As soon as you buy a brand new phone, its value starts to depreciate. But not all phones depreciate at the same rate. There are a lot of factors involved, including the operating system, the phone’s features, and the rate of change in the wider mobile phone industry.
We’ve all had phones that have eventually become too slow or clunky to use, although that’s less of an issue now that most handsets can run modern software comfortably. But just like a car, a brand new mobile’s value crumbles as soon as it’s used.
Depreciation is just one of the many reasons why used mobile phones present good value. But just how bad can it get?
How Quickly Will Your Phone Lose Value?
Over on Decluttr, there are some eye-popping figures that show us just how fast a new phone loses value.
After a year, the effect of depreciation is pretty clear to see:
- LG phones lose around 75% of their original value
- Samsung phones lose around 72%, not far behind
- Apple phones did relatively well, in comparison; an iPhone loses about 57% of its value in a year.
These figures may reveal an interesting difference between iOS and Android. Some manufacturers of Android phones fail to release software updates, or they can come around pretty slowly. In contrast, Apple customers all get the newest release when it comes out – assuming their phone can support it.
After two years, the loss of value for an HTC phoneis about 85%. Considering HTC handsets are not that cheap to begin with, it really reveals how a brand new handset can be a false economy, even if it’s from a brand that has a reputation for being a bit cheaper.
You Can’t Control Depreciation
Phones obviously lose value if you don’t look after them. That’s why used mobile phone wholesalers spend a lot of time carefully testing the phones they buy. Nobody wants to buy a used mobile and discover a fault a few months later.
But depreciation isn’t quite the same thing as general wear and tear. Sometimes, a phone will depreciate simply because a new, better phone has hit the market.
Take the Samsung S3 as a prime example. Its value took a heavy hit when Apple released the iPhone 5S.
Again, Apple’s phones have a reputation for holding value well. The same can arguably be said for its line of computers. The brand has a reputation for good build quality, and that can be a big boost when you’re buying used.
Buy Used and Avoid the Value Hit
The best way to avoid the rapid devaluation of a handset is to buy it used in the first place.
Buying a used mobile phone doesn’t necessarily mean that you’ll get an old, poor-quality handset. But if you’re willing to get something that has been opened already, you could save a lot of money. It’s just like buying a ‘nearly new’ car, instead of a brand new one.
Phoenix Cellular are Europe’s leading experts in supplying used mobile phones wholesale. If your business could use a boost, contact us today to find out how our used mobile phones could save you more cash.