Unlock the Secret: How Google's Cash Offerings are Tempting iPhone Users to Switch to the Pixel 8

Google's recently unveiled Pixel 8 and Pixel 8 Pro have introduced a fresh wave of trade-in incentives. This strategy has long been employed by smartphone manufacturers to attract new users, and Google is particularly aggressive in its pursuit of iPhone and Apple Watch owners, even at the risk of some embarrassment.

The arena of device trade-ins has become a fiercely competitive landscape for both smartphone companies and carriers. Often, these entities are willing to pay a premium for used phones in order to retain your loyalty to their products and services. Carriers have a stronger motivation to engage in this practice, as they can offset the costs of trade-ins with the revenue generated from your phone plan. However, trade-in deals are also available from industry giants like Apple, Samsung, and Google.

This time, it's blatantly obvious who Google is targeting: Apple users.

Google Is Paying a Premium for iPhones

If you currently own a Pixel device, you may consider upgrading to the latest version. Google is offering $325 for a 128GB Pixel 7 or $420 for a 128GB Pixel 7 Pro. These prices are significantly lower than those of the Pixel 8 and Pixel 8 Pro.

Now, what if you're an iPhone user planning to switch to a Pixel? Google is willing to pay $350 for an iPhone XR that's five years old and has only 64GB of storage. This is higher than the value of a Pixel 7, which was released just a year ago. In the case of the previous year's iPhone 14 Pro with 128GB, Google is offering a generous $620, which is $200 more than the Pixel 7 Pro.

Essentially, if you own an iPhone that is five years old or newer, you'll receive a higher trade-in value compared to most Pixel phones. In the table below, I've compared the trade-in offers for 128GB non-Pro, non-Max models over the past five years. The last column of the table displays the additional "premium" benefit you'll receive when trading in an iPhone as opposed to a Pixel. Although the variation between models may not be consistently predictable each year, you'll still obtain a significantly better value when trading in an iPhone regardless of the specific model.

These offers are provided by the Google Store, however, Google Fi Wireless does not offer much better deals. If you purchase a 128GB iPhone 14, you will receive $330, whereas a 128GB Pixel 7 is priced at only $150. It's worth noting that you can get $400 if you activate a Pixel 8 on an existing Google Fi line, which is the only positive aspect.

Interestingly, the situation is similar for the Pixel Watch 2, but not as noticeably imbalanced. Google offers $175 for an Apple Watch Ultra and $150 for last year's Pixel Watch. However, they only offer a meager $68 for a Samsung Galaxy Watch 5 or Watch 5 Pro.

Google's Goal Is Clear

Google's eagerness to cater to iPhone users is not without reason. While it might initially appear to be solely about the higher resale value of iPhones compared to other phones, this explanation falls short in justifying Google's substantial investment in procuring numerous iPhones. The primary factor driving this decision is probably the target audience Google aims to attract for its Pixel phones.

Google's focus on overvaluing iPhone trade-ins is aimed at attracting non-Pixel users and converting them to Pixel users. They are offering significantly better trade-in deals for Samsung phones compared to Pixel trade-ins. For instance, they are willing to pay $550 for a 128GB Galaxy S23, the same amount as for an iPhone 14. This generous approach to trade-ins is a strategic move by Google to make the transition to Pixel more enticing. It is likely that extensive research and analysis went into determining the cost of luring iPhone users out of the Apple ecosystem, resulting in the trade-in premium illustrated in the chart above.

As a Pixel owner, it's disheartening to witness Google's eagerness to pay a considerable amount for Apple and Samsung phones that are released in the same year as my Pixel 7. If I could recover more than half the cost of the Pixel 8 like Apple and Samsung owners, I would be more inclined to upgrade this year. It seems that Pixel owners must take matters into their own hands to secure a Pixel at a more favorable price.