iPhone Trade-In Value To Tank To 30% Hours After New Phone Is Unveiled

In just a few weeks, Apple will unveil its latest range of iPhones, meaning that the brand’s current devices are set to dramatically drop in trade-in value once the new line-up is announced. Tech buy back site and refurbished seller, Decluttr, conducted its annual phone depreciation study to reveal that handsets could lose up to 30% in just 24 hours following Apple’s keynote in September.

The iPhone XS which was released last September, and the X, Apple’s 2017 flagship, both launched at the same price: $999. After six months on the market, the X had a trade-in price of $573, and the XS a trade-in price of $557, meaning both depreciated between 43% and 44% respectively in the six months following their launches.

Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q2 hedge fund letters, conference, scoops etc

trade-in

Here’s the current trade-in value each iPhone has lost since its respective launch dates:

  • iPhone 7 has lost 81% of its value
  • iPhone 8 has lost 65% of its value
  • TheiPhone 8+ has lost 61% of its value
  • iPhone X has lost 59% of its value
  • The XS has lost 49% of its value
  • iPhone XR has lost 43% of its value

Decluttr also looked at the depreciation rates of Samsung devices for an alternative comparison. With the latest S10 range, out for only a few months, Decluttr found that the S10 has depreciated by 57% and the S10+ by 52%, while at 6 months after launch, the S9 lost 57% of its value and the S9+ 55% of its value.

SamsungSamsung Trade-In Value

Here’s the current trade-in value each Samsung phone has lost since its respective launch dates:

  • S7 has lost 91% of its value
  • S8 has lost 82% of its value
  • S8+ has lost 81% of its value
  • S9 has lost 77% of its value
  • S9+ has lost 73% of its value
  • S10 has lost 57% of its value
  • S10+ has lost 52% of its value

Interestingly enough, another study Decluttr recently conducted revealed that despite learning that few anticipated updates are coming to the iPhone 11, 82% of people who’ve been considering purchase of the new phone stated that their interest in purchasing the phone either has not changed or has even increased, while one in four iPhone owners said that they plan to purchase the iPhone 11.

Google

Value of iPhone trade ins

So why are these newer devices losing more trade-in value than their predecessors? Liam Howley, CMO at Decluttr, comments: “In the past, we’ve seen that devices with higher specs typically tend to hold their values well, however, in the recent set of releases, this hasn’t been the case. The reason for this is mainly a lack of innovation and consumers can’t distinguish between the upgraded features, which leads to them choosing an older generation of the phone when thinking of ‘upgrading’ – because essentially, they can purchase an older version of the phone and it does the same thing, but for a lot cheaper.”

For the full set of Decluttr’s depreciation data, please visit: decluttr.com/phone-depreciation-2019.

Current trade-in values are as follows (trade-in values may be subject to change in the next few weeks):

trade-in




About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and three kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own 2.5 grams of Gold