Samsung makes high-quality flagship phones that cost more than Rs 60,000 every year. But, did you know that Samsung phones carry the lowest second hand value in comparison to the iPhones? Yep, that’s what a recent report from Bankmycell Report has to say.
It’s interesting to see the head-to-head comparison between the value of iPhone and Samsung Galaxy flagship (the S series) phones, which probably shows why iPhone still continues to sell in big numbers, even though it costs a hell lot more.
The following graph shows you the staggering fall in value of the Galaxy S9 series from Samsung. Nobody knows the exact reason for such a drop but probably has to do with brand value and competition in the lower tier able to offer similar features at a competitive price.
In addition to that, launch of a new variant means that not only the selling price of its predecessor drops but also its appeal in the second hand market.
When you look at the brand new price in March (S9 at $720 / S9+ at $840) these phones are now worth 59 percent less than what the consumer paid for them. That’s some crazy smartphone depreciation right there!Bankmycell Report
What must concern Samsung is that the drop in value has been consistent over the years, and is likely to have similar impact on Galaxy S10 as well.
This is where Apple has been smart with its pricing and product value strategy. It’s not as if the value of older iPhones don’t drop but compared to its Android competition, the drop is less.
While the Samsung Galaxy S9 saw a value drop of over 59 percent, the top-end model of iPhone X from 2018 just saw a drop of 32 percent in value. This is where Apple’s novelty (or call it luxury factor) has carried it through, even when the prices of the newer models have gone as high as Rs 1.45 lakh in markets like India.
iPhone resale value aggressively plummets with every new iPhone release but manages to command a decent value in the second hand marketBankmycell Report
But, the report says that the value stabilises quickly, for which iPhone users have to thank various upgrade or buyback programs. If someone goes out to replace his/her one-year old iPhone X for the XS, chances are, he’ll have to spend less to upgrade.
That doesn’t mean you should only buy a phone because of its higher resale value, especially if you can manage to use a phone for more than three years.
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