Usell is one of the companies expected to benefit from the launch of the new versions of iPhone. The launch of the application uSell Current is also likely to help the company. It allows customers to determine the value of their iPhone directly on the mobile. The value gets updated on a real-time basis. Customers prefer to own newer versions of their smartphone whenever they come to the market, and resale value of Apple's products offers them a unique advantage. There are also those who want to own a smartphone, even if it is a slightly older version. For Apple, the previous version may not always be too far behind. The technological gap between two versions of other smartphones is also not always too big. Breakthrough or disruptive technology is not launched too often. That being the case, resale value will be an important competitive advantage which companies will seek to achieve. Further, the lower end market customers may go for the previous version of a high end brand instead of going for a new version of lower level brands. Companies like Usell will be in a position to leverage this change in the marketplace. Fundamentally, the company reported better numbers in H1'13 compared to H1'12. The revenues increased from $836K in H1'12 to $2.27 million in H1'13. The net loss declined significantly from $7.26 million to $2.69 million during the same period. The loss per share declined from 77 cents in H1'12 to 4 cents in H1'13. Stock based compensation comprised $1.4 million of this loss. Even for Q2'13, the revenues increased by more than 100% and the loss declined by 82%. The company needs to translate the exponential revenue growth into consistent improvement in bottom-line margins. If the company can show remarkable improvement over the next few quarters, then the outlook for the stock may change significantly.
