Research suggests that the value of your iPhone could drop by over 40% in the weeks following the release of Apple’s (APPL) new 2020 models.
Britons planning an upgrade should pay attention to the best time to trade in their device to get the highest return, advises tech buyback and sales site Decluttr.
The value of older Apple devices typically drops within hours of the announcement of a new device.
This year could see the launch of Apple’s highly anticipated first 5G-enabled handset – meaning the depreciation rate could be even higher than in previous years, although the tech giant said during Tuesday’s virtual event that it was delaying the release of its signature smartphone.
Decluttr’s annual mobile phone depreciation study found that mobile phones lose about 40% of their value in the first month after they’re released. The value of older mobile devices then drops by a further 15% in the first month after a new phone is released.
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However, the iPhone XS and XS Max saw the fastest and steepest declines compared to previous releases – they lost 40% and 39% of their value, respectively, in the month the XR was released.
Higher-end mobile devices costing $900 (£693) or more lose 51% of their value in the first six months. Mid-range mobile devices costing $700 (£539) to $899 lose about 56%, and cheaper phones costing $699 or less lose about 64%, according to the study.
12 months after the market launch, the loss of value continues. High-end devices lose about 58% of their launch value, mid-range devices about 65% and cheap mobile phones about 66%.
For users of non-Apple devices, the need for a timely trade-in process is even more important, Decluttr warned.
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Compared to other manufacturers, Apple phones are by far the best: they lose 51% of their value in the first 12 months and 67% over a typical two-year contract period.
In comparison, Samsung (BC94.L) devices lose about 67% of their value in the first year and 80% by the end of the second year. The Samsung S10 5G – one of the most expensive models the brand has ever released – has experienced one of the brand’s worst value drops to date, losing a whopping 72% of its value in just 12 months after release.
Phones from Google, Huawei and OnePlus are among the manufacturers with the worst depreciation rates, typically losing between 69 and 72 percent of their value after the first year of release, the study found.
Overall, iPhones rank eight of the top ten in terms of value retention in the first year after release, demonstrating the brand’s ability to maintain its value compared to others.
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Of all the phones analyzed, the iPhone XS and XS Max, which cost $999 and $1,099, respectively, retained the highest percentage of their value in the first 12 months after release, losing only 45 and 43 percent, respectively.
The iPhone X also performed well, losing only 58 percent of its value in the first year of its release.
“As we anticipate Apple will soon launch its first 5G-enabled device, we would encourage anyone planning to upgrade to trade in their device as early as possible to get the best return,” said Liam Howley, CMO of Decluttr.
“We have seen that the availability of innovative features has influenced the depreciation of other devices in the past. This year, it is likely to play a significant role.”
