In a highly competitive secondary smartphone market, value retention remains a crucial factor for consumers. Recent data from both SellCell (USA) and RecommerceIQ (Europe) reveal that while Apple iPhones have historically excelled at maintaining their resale value, Samsung’s Galaxy S series is catching up. Let us share latest European and American trends in depreciation, particularly focusing on the implications of the recent Apple iPhone 16 launch compared to Samsung’s offerings.
Apple iPhone Value Retention Under Pressure
Historically, Apple iPhones have been celebrated for their ability to hold value over time, benefiting users when it comes to resale. However, data indicates a concerning trend for Apple. Since the launch of the iPhone 12, Apple’s devices have experienced a nearly 5% annual decline in value retention across its lineup. The launch of the iPhone 16 has further accelerated this trend, with the latest model losing value at a rate 8% faster than its predecessor, the Apple iPhone 15.
In the first two weeks post-launch, the Apple iPhone 16 has lost an average of 41.2% of its value, compared to 33.0% and 33.2% for the iPhone 14 and 15, respectively. This steep depreciation raises questions about Apple’s position as the leading manufacturer of smartphones in terms of investment value. We must admit that a recent analysis, published by secondarymarket.news earlier, as shared by Reebelo’s Josh Beasly tells a different story. Based on data from English CompareAndRecycle and musicMagpie his conclusion is that Apple iPhone 15 trade-in values have resurgence.
Samsung Galaxy S series shows improvement
On the flip side, Samsung is making significant strides in value retention with its Galaxy S series. The Galaxy S 22 series lost 66.7% of its value within a year, whereas the Galaxy S 23 improved upon this, with a depreciation of 61.1%. This 5.6% enhancement demonstrates Samsung's commitment to developing phones that retain value better with each new release.
How about Europe?
In Europe, the depreciation patterns for Samsung's Galaxy S-models illustrate a similar trend according to RecommerceIQ. How does the company obtain its data? RecommerceIQ offers dynamic pricing for the purchase and sale of smartphones, giving them access to almost infinite prices and offers from the European secondary market. Mind you, in this case, their data is based not on trade in but on sales out. However, we can easily compare trends with USA data from SellCell. Six months after launch, these Samsung Glaxay S-serie devices typically see a 25% drop in value in Europe, which increases to approximately 30% one-year post-launch. While Samsung models do experience strong depreciation during the first three to four months, they tend to stabilize thereafter, marking a more gradual decline compared to their earlier depreciation rates.
So in Europe devaluation seems to be less than in the USA.
Long-term implications for consumers
As Samsung continues to enhance the value retention of its devices, it raises important considerations for consumers. While iPhones are still regarded as valuable, the increasing depreciation rates could influence purchasing decisions. If this trend continues, it may only be a matter of time before Samsung surpasses Apple in terms of resale value.
Conclusion
The competitive landscape for smartphones is evolving, with Samsung's Galaxy S series showing marked improvement in value retention against Apple's iPhones. As depreciation trends shift, consumers may need to reassess their purchasing decisions.
Via: SellCell and RecommerceIQ
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