With the 2020 Apple Keynote just around the corner, Apple fans are eagerly awaiting news about the latest handsets. However, those looking to sell their old iPhone 11 to get the highest return may see their value plummet by up to 35% in the coming weeks.
At least that’s according to musicMagpie which has just released its 5th Annual Phone Depreciation Report, updated with the latest depreciation statistics for 2020 – https://www.musicmagpie.co.uk/phone-depreciation/
The annual report uses trade-in data from musicMagpie to track the value of the most popular handsets from Apple, Samsung, Google, OnePlus and Huawei. What impact will the new iPhone release have on phone values?
Typically when a new iPhone is released, the value of its predecessors drop by 11% in the first month alone, and by a total of 17% after three months. The biggest drop from previous releases was by the iPhone XS and XS Max, which both dropped by over 35% in value in the three months following the release of the XR.
However, with this year’s anticipated first 5G-enabled Apple phone to hit the market, the rate of depreciation could be even higher than previous years due to the new phones having this standout feature.
Says Liam Howley, Chief Marketing Officer at musicMagpie, commented on the results of this year’s report:
“As we’ve found in previous years, Apple handsets continue to hold their value for longer than any other phone brands. However, they still see their value drop dramatically following the release of a new handset.
“With the expectation of 5G, this year’s release could lead to an even quicker rate of depreciation for older models that aren’t 5G compatible. Anyone wanting to upgrade should aim to get a price locked-in as soon as possible, to make sure they’re getting the best value for their old handset.”
More expensive handsets retaining most value
According to this year’s report, while handsets are becoming increasingly expensive, the pricier models are retaining their value much better than cheaper handsets.
Of all the handsets released in 2019 onwards, the iPhone 11 and 11 Pro managed to retain their value the most in the first six months after release, dropping by only 34% and 35% of their original values of £729 and £999. Cheaper models like the Google Pixel 3a, costing just £399 on release, lost almost twice this, at 64%.
As in previous years, Apple continues to hold the top spot for the brand which retains the most value, with iPhone losing an average of 43% of their value in the first 12 months, and 61% by the end of a standard 24-month contract period.
Samsung comes in a close second, with handsets depreciating by an average of 64% in 12 months and 76% in 24 months.
Huawei is bringing up the rear, with their handsets losing 74% of their value in the first 12 months and 88% by the end of a standard 24-month contract period.
Which phones are being traded in the most?
musicMagpie claims that the iPhone 7 was the most commonly traded-in handset in the past 12 months. And in good news for consumers, the handset was among the top 10 for retaining value, only losing 44% of its value in the first 12 months.
You can see the full report here: https://www.musicmagpie.co.uk/phone-depreciation/