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It is pretty clear to many that an average Android smartphone is likely to lose value a lot faster than an iPhone. But how much it loses might actually shock you. According to a recent smartphone depreciation report, a flagship phone running on Android loses close to or even more than 50% of its value after purchase. Meanwhile, it would take an iPhone a whole year to lose about 25%.
The report published a trade-in website BankMyCell.com revealed all this to show the resale value of previous Android models to be pretty bad by now. For iPhones, on the other hand, this ensures very little loss for anyone that wishes to sell an older iPhone model.
The Samsung Galaxy S10+ would actually be the best example of a flagship that lost way more than the manufacturer intended. In just its first nine months after launch, the phone had depreciated by 46%. In comparison, its rival, the iPhone XS Max lost approx. 26% of its value 12 months after its launch.
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That is quite horrible on Samsung’s side and painful for an owner that wished to upgrade to the next flagship. According to the shared chart, an iPhone that started at KES 85,000 on day 1 will have an estimated price of KES 24,000 within 4 years. For an Android phone that launched at an identical value, it will have depreciated to KES 14,000 by year 4.
Image courtesy BankMyCell
Brand-wise, Nokia smartphones were surprisingly the least depreciating on the Android side, while Motorola devices lost close to 60% of their initial values.
Image courtesy BankMyCell
So, why do Android phones lose value so fast?
Too Much Class
Android has about 75% of the share of the market globally, hence for every iPhone, we have three Android phones. In Kenya alone, Android claims 86% of the market share while iOS has only 4%. This huge demand, of course, brings in too much supply rendering most of the phones basically useless in no time. That is when resellers are forced to lower their prices if they wish to have any chance of selling.
The other obvious issue is perception. Apple devices will forever be viewed as those of a higher status in the market. Some consumers will even go ahead to prefer a second-hand iPhone to new Android flagship or mid-range smartphone. It might seem irrational to many, but the heart wants it wants.
However, the research goes ahead to guide users on how to get the best out of their phones. An iPhone reseller would best have the latest model if he/she wants to maximise on the value much later.
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