The resale value of iPhone plays an important role in decision making. While selling a new iPhone to customers, many retailers always insist that, unlike Android phones, Apple iPhone offers a far better resale value even after a few years of buying. Many industry reports have kept claiming that iPhone resale value drops at a much slower rate than any premium Android smartphone. The claim, however, seems to be far from reality.
We decided to dig deep into the claim. And, no better than Apple, Inc. (NASDAQ: AAPL) itself would be able to give us enough hints about the drop in resale value of iPhone with each passing year. So, we did what we did the best, and the results were surprising.
Apple iPhone Resale Value: Shockingly Disappointing
Every year when Tim Cook & Team releases a new iPhone, it makes a powerful statement to justify the exorbitant price of iPhones and make millions of people fall in love with the device instantly.
“This is the best iPhone Apple has made!”
Apple iPhone is indeed one of the best-performing smartphones in the world. Unlike Android, the issue of fragmentation, data tracking, and users’ privacy is handled impressively by Apple in iPhones. On the other hand, the unparalleled brand value of Apple devices makes it the device majority of people aspire to own.
Resale value of iPhone 12 Pro Max
But you would be surprised to know that when revaluing the best iPhone Apple made a year ago, Apple finds it no better than any other premium Android smartphone.
According to the Apple website, an under warranty 6.7″ iPhone 12 Pro Max losses 67% of its original selling price within just ten months.
To understand the drop in resale value of iPhone 12 Pro Max and other models, Team Dazeinfo did brief research by using the trade program available on Apple’s website. We evaluated the trade-in price of various models of iPhones offered by Apple, and the result was immensely disappointing.
The top model iPhone 12 Pro Max, launched last year, lost two-thirds of its value in just ten months despite being under warranty and meeting all criteria mentioned on the Apple website. The device, which was price tagged at Rs 1,29,000 by Apple barely ten months ago, is now valued at no more than Rs 41,400 by Apple – a drop of Rs 88,000 in less than a year.
Our team has also investigated the exchange value of many other models bought within one year offered by Apple.
An iPhone 12 Pro, still under warranty, bought in November 2020 for Rs 1,19,000, is now being valued at just Rs 38,200 – a drop of nearly Rs. 82,000 in 11 months only.
The results with other iPhones – no older than one year – with different IMEI numbers were not much different either.
This is in stark contrast to many independent research reports that claim that the resale value of iPhones depreciates at a slower rate than premium Android smartphones.
A study released early this year claimed that considering for one year, the average depreciation of a new iPhone’s trade-in value stood at 16.70% compared to Android’s 33.62%. According to the study, it takes four years for iPhone to lose its value by 66% – a finding contesting the resale value of iPhone offered by Apple under the trade-in program.
It’s also surprising to learn that iPhone resale value has been dropping at a faster rate despite iPhone’s increasing value. In the last 14 years – since 2007, when the first iPhone was launched – the price of iPhone has gone up by 81%. At the same time, the resale value of iPhone has dropped to 67% from 39% for a year-old iPhone.
iPhone: A Value For Money?
The above findings lead us to think about whether the iPhone trade-in program offers value for money? It’s a tricky question to answer as it varies from person to person.
To own a device that costs you nearly Rs 6,000 a month as a rental in the first year in India – if you don’t want to take pain to find a buyer on your own and decide to trade-in under Apple’s program – you must have deep pockets.
For rest, we leave you with a question to ask yourself.
Let us know your views and take on the resale value of iPhone models and Apple’s iPhone trade-in program in the comment section below.