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Smartphones depreciate faster than cars, says report
Posted on: 19/Jun/2016 11:02:10 AM
A recent report by musicMagpie.co.uk has said that smartphones may lose half their initial value in a month’s time, which is even less than the value at which vehicles depreciate. The report says that cars depreciated in value by 20 per cent after a year in comparison to a smartphone which went down by approximately 65 per cent of their value in just a month’s time after their release.
According to the report, iPhones depreciate much less in comparison to Android devices. The iPhone 4 continues to retail 39 per cent of its value even after five years after its launch; the iPhone 6, 16 GB model, managed to retain 50 per cent of its value even after a year from its release. However, the iPhone 5 dipped significantly in terms of depreciation, losing 66 per cent of its value just after eight months of release.
As far as Android devices are concerned, the Samsung Galaxy S4, released in 2014, lost half its value within two months of being launched in the market.
The HTC One M9 is the worst hit. In a month it lost 65 per cent of its initial market value of USD 826.
The report attributes the rapid depreciation to the rapid inception of faster and superior models. With so many releases on a monthly basis, smartphones are bound to lose more value than most commodities.
Research found that unique devices, like limited editions, or a device which is high in demand, takes more time to depreciate. On the other hand, if there is less demand for a smartphone, the value depreciates much faster.
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