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| iPhone Secondhand Prices Drop Faster with Each New Generation, Study Shows |
A recent analysis of resale data has revealed that older iPhone models tend to depreciate in value more quickly with each new release, narrowing Apple's long-held edge over Samsung in the secondary smartphone market.
While iPhones have traditionally maintained their worth better than competing brands over time, the study from major used device marketplace SellCell indicates Cupertino's handsets are shedding sticker price at an accelerated clip in recent years. In contrast, Samsung's flagship Galaxy S lineup appears to be holding steady or even appreciating to a small degree compared to predecessors when resold within the first year of availability.
Let's dive into the key findings from SellCell's deep dive into pricing data aggregated across 40+ buyback partners to get a clearer picture of how rapid depreciation may be chipping away at Apple's reputation for longevity among used phone shoppers.
iPhone 16 Drops 41% of Value in Just Two Weeks
In one of the more startling revelations, SellCell found the iPhone 16 series shed a whopping 41% of its original worth - around $468 based on average list prices - in the fledgling fortnight after its September 20th launch.
That represents a sizable 8 percentage point increase over the 33% depreciation endured by both the iPhone 15 and 14 models during their respective introductory 14-day windows last year and the year before.
You read that right, folks - the cutting-edge iPhone 16 is already worth less than half what it cost new after only a couple of weeks on the market. That's got to give even the most diehard Apple fans pause before rushing out to pay premium sticker prices!
One-Year Depreciation Accelerating Steadily
Looking at year-long ownership cycles paints an even grimmer picture. According to SellCell's tabulations, every iPhone generation since the iPhone 11 in 2019 has seen slightly faster depreciation from new to used over 12 months.
Take for instance the iPhone 15, which dropped a full 48% of value after one turn of the seasons - a half percentage point greater shrinkage than its direct predecessor, the iPhone 14's 47.7% annual slide.
Meanwhile, the iPhone 13 lost 46.2% in its first year, topping the original iPhone 12's 43.8% dip. You get the idea - iPhone residuals are eroding by small but steady increments with each launch.
Samsung Slowing Depreciation Curve
In Samsung's corner, the Korean tech powerhouse appears to have stemmed the devaluation tide for its titanic Galaxy S line at least relative to preceding S models.
While the Galaxy S22 still posted a substantial 68% price plunge 12 months post-release, the all-new S23 declined a comparatively milder 62.4% over the same timeframe according to SellCell's bookend figures.
And diving into the quarterly stats, the S23 held half its original worth after just one month compared to 51.1% for the S22. Even at the 6-month mark, depreciation clocked in at a lesser 54.1% versus 54.4%.
It's a marginal gain, for sure, but stabilizing—if not outright improving—used perception among core Samsung admirers could nibble away at Apple's dominance by degrees. Every percentage point counts in the high-stakes resale market.
A Tipping Point on the Horizon?
So what's causing Cupertino's reigning iPhone champ to rapidly shed value where competitors are keeping more of a level profile? SellCell posits a couple possibilities.
First off, iPhones may simply be maturing faster in the eyes of savvy buyers seeking the best bang for their bucks. Each new launch offers fewer revolutionary upgrades than years past, diminishing vibrancy as hand-me-downs.
Furthermore, Samsung has relentlessly refined its flagship S line, upping specs, features and polish with each iteration to rival top iPhones on benchmarks that really count for resellers. Combining enhanced performance with price cuts over Apple spells stolen thunder.
"The gap between iPhone residuals and others is narrowing quickly," cautions SellCell's analysis. "If this trend persists, role reversals could come to pass down the line." A bold statement, no doubt, but one Apple would be foolish to dismiss out of hand given its growing depreciation woes.
Only time will tell if the fruity phone maker can reclaim pricing momentum as it enters a period of intense transition. Whether customers remain loyal to aging iPhones at current breakneck replacement tempos also stands to impact the shifting used dynamics.
For now, savvy secondhand shoppers would do well to factor Apple's declining retained value into negotiations or wait patiently for bigger discounts deeper into a handset's lifespan. But one thing is for sure - the days of iPhones absolutely ruling the roost in resale may already be behind us.
How Does Screen Replacement Affect Resale Worth?
With most modern smartphones constructed of fragile glass, it's only natural breaks and bubbles will occur over the course of heavy usage. Repairing cracked displays seems a prudent investment to preserve a device's function and aesthetics.
However, potential buyers may view such "cosmetic damage" repairs as a red flag when considering a used purchase no matter how professional the job. Will spending a couple hundred notes on screen replacement actually help or hurt resale value down the line?
To understand the tradeoffs, let's look at perspectives from both buyers and sellers in this common scenario:
From a seller's point of view, patching up a display is undoubtedly better than trying to offload a device with a shattered or stuck-on screen protector, as that signals the phone was poorly cared for by a previous owner. Repairs through certified service centers also support higher asking prices versus hack jobs.
Meanwhile, buyers screening the used market naturally want devices appearing as close to "mint" condition as can be had at a discount. Any signs of prior damage, regardless if remedied, might cast doubts about a handset's history and overall integrity no matter the quality of repair work. Was it dropped multiple times pre-fix requiring other unknown internal work?
To assuage concerns, detailed service records, warranty documentation and seller descriptions outlining the accident circumstances upfront help assure wary buyers everything was set straight as advertised. High seller reviews and guarantees also reinforce confidence the phone isn't hiding deeper issues.
Ultimately, a competently repaired screen on a gently used phone needing only cosmetic TLC is more attractive to buyers versus hiding imperfections. With full disclosure and proof of quality repairs, sellers can recoup 60-80% of the screen replacement cost through a higher sale versus keeping it cracked. Open communication works magic in these gray area situations.
Conclusion
While iPhone residuals may never again reach the lofty heights of yesteryear, savvy buyers and sellers can still get good bang for their buck with a few patience and strategy tweaks. Outsmarting depreciation demands factoring the full lifecycle ownership experience, not a myopic focus on sticker prices alone. With a holistic view of total cost, brand loyalty need not go out the window either. The art is finding win-win compromises along each step of the used device pipeline.