You’ve probably heard the old adage that a new car starts losing value the moment you drive it off the lot. Well, it’s true about more than just cars. The aftermarket for used phones is now a thriving industry. With new models rolling out every few months, lots of people rush to get their hands on the latest and greatest. This leaves behind more recent generations of phones that can be sold off, rather than just collecting dust. When it comes to pricing, several different factors are considered. The brand of the phone is one of the important things governing the resale price.
Standing the Test of Time
Newer models of phones just naturally garner a bigger price tag than their predecessors. When it comes to technology, newer is better. You’re not going see a market for “vintage” phones. Technology is advancing so rapidly that something manufactured a few years ago now seems all but obsolete. There is a price window in the aftermarket, and you need to sell your device before it closes. Some brands and models, like the iPhone, tend to age a little more gracefully than others.
Smartphone Buyback Depreciation by OEM Over 36 Months
Is Apple the Clear Winner?
The schism between iPhone and Android users has been a long and bitter one. While the jury’s out as to whether the iPhone is “better”, it certainly tends to be more valuable. What we’ve found is that Apple iPhones hold their value significantly more than other models. After a year of use, an iPhone 5’s resale price is about half of the original retail price. In comparison, a Samsung Galaxy S3 fetches a little over a third of its original price. After three years’ time, the price of a Samsung sinks to only 6% of its initial value. The iPhone would receive 17%, still earning well over a hundred dollars. Demand is out there for a wide variety of phones, but it remains the strongest for Apple’s flagship.
Smartphone Buyback Prices by OEM Over 36 Months
The cost of ownership isn’t something we typically think about when purchasing a new phone. Based on our analysis, choosing an iPhone versus other competitors appears to be less expensive than you think when you factor in the residual value. Consider this information the next time you buy a new phone and your wallet may thank you.