A notable trend in the smartphone industry is taking place as iPhones are losing value faster with each new generation.
The issue is even more concerning as Samsung 's Galaxy S phones hold their value better. This information is based on the analysis of smartphone and tablet marketplace SellCell, with data from more than 40 purchasing service providers.
iPhone is losing value, in contrast to Samsung.
The results show that, despite still being considered the gold standard for value, the iPhone is struggling to maintain its value, especially in recent models.
Specifically, the iPhone 16 lost 41% of its value after just two weeks of launch, equivalent to $468. Meanwhile, the iPhone 15 and iPhone 14 only lost about 33% of their value in the same period. From the iPhone 12 onwards, each new iPhone model held its value worse than the previous model. For example, the iPhone 15 lost 48% of its value after a year, up 0.5% from the iPhone 14, while the iPhone 13 lost 46% of its value, up 2.4% from the iPhone 12.
The depreciation of the iPhone 16 as well as iPhone models since generation 12 is very noticeable.
Samsung’s Galaxy S models, on the other hand, tend to hold their value better. The Galaxy S22 has lost 68% of its value over 12 months, but the Galaxy S23 has retained 5.6% more value than its predecessor. Although the Galaxy S24 was only released in January (so we don’t have full 12-month data yet), its performance so far has been impressive, losing only 50% of its value over 6 months.
Smartphones typically lose some of their value after their initial depreciation. While the iPhone still depreciates at a slower rate than the Galaxy S, the depreciation gap is narrowing. And if that trend continues, it wouldn’t be surprising to see a reversal.
New Galaxy S series models hold their value higher than older models.
While the report doesn’t give a specific reason for the change, there are a few theories. While the iPhone is still one of the best phones on the market, its appeal may be waning. In contrast, some of the more recent Galaxy S models have been highly anticipated. Additionally, Samsung now offers longer support for its products, which could be a factor in the change in depreciation rules.
For the average smartphone user, their device life span is typically closer to three years, so these numbers may not mean much if they don't regularly upgrade their devices.
