Data from tech-buying site musicMagpie has revealed that Apple devices retain most value out of all smartphone brands, with rival Samsung coming second in the phone depreciation stakes.
With Apple accounting for 51% of the UK phone market, and Samsung taking 22% of the share, the higher demand for this brand makes it a better long-term investment for people who want to make money back from their phone upgrade.
When comparing the iPhone 7 with the Samsung Galaxy S7, the newest iPhone model only lost 34% after a month on the market, whilst the S7 lost 50% of its value over the same period.
The study revealed that newer iPhone models also hold their value better as each version is released. For example, the iPhone 5 had lost 65% of its value after 6 months on the market, whereas the SE and 6s lost less than 40% in the same time period.
According to Liam Howley, marketing director at musicMagpie, the clear winner when it comes to phone depreciation are Apple users. “iPhones have a reputation of being premium products and after the initial fall in price when a model is launched, the iPhone holds the most value after a 12-month, and even a 24-month period which are both average contract lengths. This is good news for savvy users who are looking to cash in after their phone contract ends as they know they’ll get the best value from their old iPhone if they are re-selling once they upgrade, or better still, that it really pays to sell your phone as soon as possible if you’re planning to upgrade”.
The data also showed that whilst even the newer Apple and Samsung models tend to cling to their value better, the newest models of the LG and HTC phones shed it quicker. “This really does paint a picture of an industry where brands are struggling to keep up with the dominance of the mighty Apple and Samsung within the market,” says Howley.
In fact, musicMagpie’s study revealed that the HTC One M9 lost 65% in value in just the first month of being released, making it the biggest depreciator whilst being barely-out-of-the-box. After a year, the phone lost 75% of its value.
At the end of a 24-month period, which is often the average contract length, it was actually HTC that performed the worst out of all brands. The HTC One M7 lost 86% of its value, with the HTC One M8 not far behind, losing 83% of its value after two years.