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For years, iPhones have held a reputation for strong resale value, outperforming Android phones. However, recent trends suggest a shift, particularly since the release of the iPhone 12. While iPhones still generally retain their value better than Android devices, data indicates that iPhone depreciation is now happening at a faster rate than Samsung Galaxy S series phones.
iPhone Resale Value Decline: A Closer Look
Surveys conducted by SellCell, a marketplace for trading used phones, reveal a significant trend: the average depreciation rate for older iPhone models compared to newer ones is steadily increasing. This translates to new iPhone generations losing value faster than their predecessors.
For example, the iPhone 15, six months after release, experienced a 36.5% depreciation. This exceeds the 37.4% depreciation of the iPhone 14 and the 28.4% depreciation of the iPhone 13. This suggests that the iPhone's price drop is becoming more rapid with each new generation.
Samsung Galaxy S Series Holds Its Value
In contrast to the iPhone, the Samsung Galaxy S series has experienced a decrease in its average depreciation rate. This indicates that the prices of Galaxy S phones are becoming more stable over time.
For example, the Samsung S24 series, six months after release, had a 50.4% depreciation. This is lower than the 54.1% depreciation of the Samsung S23 series and the 54.4% depreciation of the Samsung S22 series. This trend suggests that the Galaxy S series is holding its value better than previous models.
iPhone 16: Early Depreciation Concerns
The iPhone 16 series is experiencing particularly fast depreciation, exceeding the rates of both the iPhone 15 and iPhone 14, especially during the first two weeks after release.
During this initial period, the iPhone 16 saw an average depreciation of around 41%, equating to an average price drop of $467.46 across all models. This surpasses the average depreciation for the iPhone 15 and iPhone 14 series, which both dropped around 33% during the same period.
The iPhone 15 series saw an average price drop of $389, while the iPhone 14 series experienced a $369.93 drop from its initial price.
Long-Term iPhone Depreciation Trend
SellCell's analysis reveals a trend of increasing depreciation since the iPhone 12's release in 2020. Every new iPhone model since then has seen an increase in depreciation, particularly after one year on the market.
For instance, the iPhone 15 experienced a 48% depreciation after 12 months, compared to its original price. This represents a 0.5% increase compared to the iPhone 14. The iPhone 13 saw an average resale value drop of 46% after 12 months, a 2.4% increase compared to the iPhone 12.
In short, the price drop for the iPhone 15 and iPhone 13 is greater than that of their predecessors.
Samsung Galaxy S Series Depreciation: A More Stable Path
In contrast to the iPhone, the depreciation rates for the Samsung Galaxy S series, specifically the Galaxy S22, S23, and S24 series, have been more stable. SellCell's survey suggests that each Galaxy S model experiences a gentler depreciation curve compared to iPhones.
While the Galaxy S22 experienced a high depreciation rate of 68% after 12 months, the Galaxy S23 managed to correct this trend with a 61.1% average depreciation rate. The Galaxy S24, being less than nine months old, does not yet have data for a similar period. However, SellCell observed that the depreciation rate of this latest flagship from the Galaxy S line is quite impressive.
After six months, the Galaxy S24 series has an average depreciation of 50%. This is better than the 54.1% depreciation for the Galaxy S23 and the 54.4% depreciation for the Galaxy S22 over the same period. SellCell projects that the Galaxy S24 series will experience a better depreciation rate than its predecessors after 12 months.
What Drives iPhone Depreciation?
While SellCell didn't explicitly state the reasons for the increasing iPhone depreciation, several factors are likely at play:
- Lack of Compelling New Features: Phone Arena suggests that the lack of compelling new features in recent iPhone generations might be contributing to the increasing depreciation rates. Consumers might see less value in upgrading, leading to a faster decline in resale prices.
- Competition from Samsung and Other Android Brands: Android devices are becoming increasingly sophisticated, offering features and capabilities that rival or even surpass iPhones. This increased competition may be putting downward pressure on iPhone resale values.
- Shifting Consumer Preferences: Consumers may be becoming more open to switching between brands, potentially impacting the perceived value of iPhones in the used market.
Future Resale Value: A Look Ahead
Although Apple still holds lower average depreciation rates overall, Samsung's depreciation rates are decreasing. This suggests that the gap between iPhone and Samsung phone depreciation may narrow, potentially becoming equal over time.
While it remains to be seen whether Samsung can fully close the gap in resale value with Apple, the latest trends suggest that the future of smartphone depreciation might favor Samsung in the long run. If this trend continues, consumers looking for resale value might find more stability with the Samsung Galaxy S series in the future.
Key Takeaways
- iPhone depreciation is increasing, especially in the first few years after release.
- Samsung Galaxy S series phones are holding their value better than iPhones, with more stable depreciation rates.
- Factors driving iPhone depreciation likely include a lack of significant new features, increased competition from Android brands, and shifting consumer preferences.
- The future of smartphone depreciation may see Samsung closing the gap with Apple, potentially offering consumers more stable resale values in the long term.