We all accept that when we buy a new smartphone it is soon superseded by something new but you may be surprised to learn that it may lose half its value in a month – even faster than a new car, claims a new study.
Cars are said to lose around 20% of their value once they are ‘driven off the forecourt’ (in reality in the first year) and this is thought to continue in subsequent years, some costly smartphones went down by as much as 65% in the first month after being released, musicMagpie.co.uk reported.
It appears that it is android based devices that fair worst and iPhone that tend to fare much better.
The iPhone 4 retains 39% of its value five years after originally being launched, the iPhone 6 retained 50% of its value after 1 years but the iPhone 5 showed a disappointing depreciation of 66% after just 8 months.
The Galaxy S4, released in 2014 lost around half of its value within the first two months of appearing on the market but it is the HTC One M9 that suffered an amazing 65% loss in just one month following its release in March 2015.
The report concluded that your smartphone loses half its value for two main reasons. The first is because superior models quickly replace them and the second is because demand may not be as high as had been anticipated – consequently reducing the phones value.