Depreciating Resale Values of Smartphones

Thursday 23rd, February 2012 / 10:30 Written by

While the purchase of iPhones, Androids and other Tablets are on the rise, their resale is also shooting up. Many smartphone users want to upgrade to latest smartphone in the market. However, unless you were born with a silver spoon in your mouth, you would probably sell or exchange your old device to buy your newer device, which explains why the reselling of Smart Portable devices is on the rise. The factor of resale directly depends on the depreciation rate of these smartphones. One important point to remember is that, just as with anything else (like your car), all smartphones never depreciate uniformly.

 

Photo Credits: Mactrast

When you  want to sell your smartphone then depreciation value varies depending on the brand. A recent study found that iPhone has a really good resale value while other smartphones like Android, Blackberry, etc fail miserably in their resale value. Even after usage for 12 months or more the resale value of iPhones are as high as 63% while it is just 42% for Android phones. Another interesting fact is that even after 6 months of usage, the resale value of  the iPhone is as high as 89% while other smartphones will go for somewhere around 66%.

Graph of Smartphone Resale Value Depreciation

Credits - Priceconomics

In a study performed on all the iPhone models, 70 top-selling Androids and 30 top-selling Blackberries, the iPhone swept the competition into the dust pan. This is because of the fact that the hardware of the iPhone is very much in demand. Additionally, there are more people buying iPhones in comparison to other smartphones. These clearly states  that an Apple iPhone is definitely a good investment since you can buy it now and resell it in few months for almost the same price, while this is not the case with Android phones. If you are interested in buying Android phones then make sure you are going to preserve it or use it forever because unlike Apple iPhones, Androids doesn’t have a good resale value. This too varies with the model and brand of the Android device.

Additionally, it is  advisable to buy phone with contract (where applicable), since while reselling breaking your contract and paying termination fees are cheaper than off-contract prices especially for the Androids i.e. it’s more economical to sever your contract than to buy phones devoid of a contract. For instance, even with a $300 premature termination fee, it’s generally $100 cheaper to get a funded phone and sever the contract than buying an unsubsidized phone with no contract. Carriers want you to sign a contract, so they entice users into doing so by subsidizing the price you pay up-front for your smartphone. The high depreciation rate of the Android phone make many models of Android phones more expensive to own per month. However if you calculate the expense of owning per month for an  iPhone, it is pretty low thus making the iPhone the preferred smartphone.

Finally, the resale also depends on the location of users. An interesting study from Priceconomics showed that the users from Santa Barbara, San Francisco, Anchorage, etc, resold iPhones more than those who live in places like New York, New Jersey, Orlando, etc. Do note that this study and all the results are based on the US Market.

As the saying goes, “There is many a slip twixt the cup and the lip“; there are many factors involved between buying a smartphone and reselling it effectively.

Source: Priceconomics

About the author

Deeptaman Mukherjee is one of those rare names in the Indian blogosphere, who pursues blogging as his hobby. In the 4 years of his blogging experience, he has worked with some of India's top blogs. He presently blogs at My Portable World and Tech Buzz Online. For any engagements or just to say a Hi, do get in touch with him at Twitter, Facebook & LinkedIn. Know more about him, here.

View all articles by Deeptaman Mukherjee
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