A new car loses half its value when you leave the lot. An iPhone takes longer.
From BankMyCell’s 2020-2021 Depreciation Report:
The data below quotes the trade-in depreciation from the initial buyback price for a used iOS or Android device priced at $700 or over, then tracks its decline yearly.
In one year, the current average depreciation of a new iPhone’s trade-in value is -16.70%, compared with Android’s -33.62%.
In two years, the current average depreciation of a new iPhone’s trade-in value is -35.47% compared with Android’s -61.50%.
After four years, the gap begins to close, with iPhones losing an average of -66.43% of their initial buyback value, compared with Androids -81.11%.
My take: Which makes more sense, upgrading to a new phone every year or sticking with the one you’ve got to the bitter end?