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smartphone deprecation

Here’s something you might not know. From the moment you unbox your smartphone, depreciation sets in, and it starts to lose its value. This is what is known as smartphone depreciation and it’s natural. 

Smartphone depreciation isn’t necessarily a bad thing, in fact it has a lot of advantages like making flagship devices more affordable over time. Some brands depreciate more slowly than others, while others depreciate much faster, losing resale value increasingly each year. 

In today’s article, we’re going to dive into which phones depreciate the fastest and why.

 

The Quickest Depreciators: Android Phones

Like I said earlier, all phones depreciate naturally but when it comes to the speed  of losing resale value, Android devices fare worse than iPhones.

Based on a research that was conducted, most Android phones tend to lose at least 40-50% of their value in their first year. This means that by the end of the first year most phones are only worth half the original price. Some even lose much more than that, but these are usually phones that are considered niche, more fancy or sophisticated than others. 

These include: 

  • Foldable phones: These phones are at the top of our list when we are talking about depreciation. Phones like the Samsung Galaxy Z Fold, Pixel Fold are known to lose significant value: about 62% in the first six months alone.
  • Google Pixel A-series: For some reason, these models of Google Pixel Phones are known to undergo Steep depreciation. They have been recorded to have experienced the steepest value drops in the first 12 months, with the Pixel 8a losing over 65% of its retail price in one year
  • Lesser known or budget brands: Think about brands like the Oukitels, iTel, Realmes of this world that specialise on making budget phones.

phone value depreciationWhy Do These Phones Lose Value So Quickly? 

  • Flooded market and frequent model releases: Smartphones are an ever evolving set of consumer products, for that reason, brands are constantly putting out new models almost annually or biannually. Constantly flooding the market with these phones and still constantly releasing new models causes the values of the ones that have been released to lose value quicker. 
  • Heavy price competition: If anything is for sure it’s that the smartphone market is not a monopoly with different people choosing different devices based on the usability and cost. The competition is stiff and so is the pricing. With each brand trying their best to position their devices at the forefront, companies influence the pricing and release of their devices and depreciation value increases as a result 
  • Shorter software update lifespan: Phones are as valuable as they are most useful and software updates are among the key things that keep your phones running and usable. Shorter update lifespan means that phones have more bugs and are not as optimised and so in the long run their resale value takes a hit leading to faster depreciation.
  • Lower brand prestige or resale demand: Customer loyalty to a brand is very important since it leads to sales but not all brands have the same level of loyalty. The big brands such as Samsung and Apple have a large customer base with much higher brand loyalty and prestige, so more people want to switch to their phones. So lesser known brands that do not have the same levels of customer loyalty and so by extension their phones are not as desirable or resellable. 

why phones depreciateBrand Depreciation Rates

Phones from brands that release many models frequently, like some Xiaomi, Techno, etc, often see their older models lose value quickly especially once a newer version is available. 

Brand  Average Value Lost in 12 Months Average Value Lost in 24 Months
Apple (iPhone) 30% 60%
Samsung 41% 77%
Google (Pixel) 60% 83%

 

The Exception: Apple iPhones

To every rule there are exceptions and in more ways than one Apple iPhones are that exception in this case. IPhones tend to be the ones with the slowest depreciation rates meaning that they retain the most resale value at the end of their first year with some losing only about 25%. 

Here’s why? 

  • IPhones have a long history of providing better and longer software support often lasting  5-7 years. 
  • Higher global demand and strong brand loyalty.
  • Consistency in durability, build quality and camera output.

Why Depreciation Happens (Beyond the Brand)

  • New model releases: Most times people are out for what is perceived as new and fresh aka the latest and greatest. Once a newer model is released, people are out to get their hands on it causing the older model to lose relevance.
  • Software and hardware compatibility: the closer a device gets to the end of its support the faster it loses value.
  • Perception and trends: Consumers associate “new” with “better,” and thus cuts across every sphere of life. For that reason people will always want what’s newer even if the difference in quality is not significant or as high.

How to Slow Down Depreciation

You might be wondering, “How do I protect my phone from deprecating?” if you did, then here’s how you can slow down your phone’s depreciation rate: 

  • Keep your phone in great physical condition (use cases and screen protectors).
  • Avoid customising software (no rooting/jailbreaking).
  • Trade in your phone before the next major model launch so you can retain a good amount of value from the sale.
  • Sell through reliable platforms that offer competitive buyback prices.

Value Retention Is About Smart Buying

In the end, the best phone isn’t always the one with the flashiest specs or trendiest design. It’s the one that holds its value over time and remains easy to resell when you’re ready to upgrade. If you’re curious about how much your current phone is worth, or you’re considering trading it in for a newer model, explore your phone value and trade-in options with TheWhizCells.com.

 

Frequently Asked Questions on Smartphone Depreciation

What is smartphone depreciation?

Smartphone depreciation is the gradual loss of a phone’s value over time. It starts as soon as the device is unboxed and continues as newer models are released, software support declines, and market demand changes.

Which smartphones depreciate the fastest?

Android phones generally depreciate faster than iPhones. Foldable phones, Google Pixel A-series models, and lesser-known budget brands tend to lose the most value within the first year.

How much value does a phone lose in the first year?

Most smartphones lose between 40–50% of their value in the first year. Some niche or experimental models, such as foldables, can lose over 60% within six months.

Why do Android phones depreciate faster than iPhones?

Android phones face heavier competition, more frequent model releases, shorter software support cycles, and lower resale demand compared to iPhones, all of which contribute to faster depreciation.

Do foldable phones lose value quickly?

Yes. Foldable phones are among the fastest-depreciating devices due to durability concerns, high repair costs, and limited resale demand. Many lose over 60% of their value within the first year.

Which brand retains smartphone value the best?

Apple iPhones consistently retain value better than other brands. On average, iPhones lose around 25–30% in the first year, thanks to long software support, strong brand loyalty, and high global demand.

Does software update support affect phone resale value?

Yes. Phones with longer software update lifespans stay relevant for longer, making them more valuable on the resale market. Devices nearing the end of support depreciate much faster.

Can I slow down my phone’s depreciation?

While depreciation is unavoidable, you can reduce its impact by keeping your phone in good physical condition, avoiding rooting or jailbreaking, and selling or trading it in before a new model launches.

When is the best time to sell or trade in a phone?

The best time is before a major new model release. Once a newer version is announced, resale values for older models typically drop quickly.

How can I check my phone’s current value?

You can estimate your phone’s resale or trade-in value using online depreciation calculators or explore buyback options through platforms like TheWhizCells.com.