Just like cars lose value as you drive them out of the showroom, phones depreciate the moment they are unboxed. Phones losing value is an extremely quick process, making understanding the rates of depreciation very important. This is especially relevant if you like to sell your old device at the best value and upgrade when a new model hits the market.
Here are some facts and figures* that will help you stay on top:
- Phones depreciate nearly twice as quick as cars
Did you know that an average car depreciates by about 40% in three years, while the depreciation figure for an iPhone is 76%? Samsung phones record an unenviable 85% depreciation in three years while LG takes it further down to 92%.
- Short term depreciation figures
Phones lose within 38% and 76% of their original value in the first year, while succeeding year figures are less drastic at between 10% and 15%.
- Phone depreciation depends on the brand and model
iPhones are known to hold value better than other phones. They are followed by Samsung Galaxy phones and other Android phones. If we take one year depreciation figures as an example, an iPhone X depreciated by 45% as compared to a Samsung Galaxy S8 which dropped about 57%. An LG G6 dropped by a whopping 73% over the same time duration.
- Depreciation accelerates around a new launch
Based on historical data, old models lose between 15% and 40% of their value during the weeks surrounding a new launch.
What can you do to get the best deal?
If you’re not the kind to hold on to your phone forever, then this applies to you! Buy phones that depreciate at a lower rate, which helps get a better resale value. Another important factor to consider when selling your used phone is timing. Selling your phone at the right time – which could be year one or year two – is key to getting a great price. By the time a phone is in its third year (it could be any brand), it would have depreciated enough to get only a disappointing resale price. If you’re looking to upgrade to the new launch, a clever way to beat the price drop is by taking advantage of price locks. Price locks help by letting you lock in a price while you wait for the new model to release – without losing value.
So that’s how it works. Try selling your used phone on NorthLadder for a great price! What exactly is NorthLadder? NorthLadder is a unique service where you can sell your laptop, phone, smartwatch and tablet online and get instant cash in a safe, dignified and hassle-free manner. There is a significant difference between the average dealer price and maximum price you get if you sell your electronics online with NorthLadder. How do we manage to give you a good deal? The devil is in the details – NorthLadder has set up a platform of dealers who participate in an auction for your device. What you get is the highest bid or the best price for your used electronics from this auction. There are no hidden costs and no surprises. NorthLadder also offers a home pick up service to give you the option of carrying out the deal from the convenience of your home. To understand how exactly we work, visit our website, or get in touch at email@example.com.