Whether you’re an OEM or a reseller, the value of the devices in your inventory is crucial. Any electronic device loses value as soon it’s taken out of the box. Value falls even further when a new model is announced, known as device depreciation. Not all brands depreciate equally. Some lose value quickly, while others hold onto their value longer. The rate of deprecation indicates which devices and models keep their value the most over time.
But how do you understand the true value of a used electronic device? Brand, model and storage capacity are the basic elements to start with, but device functionality and cosmetic condition will define its true worth. That’s why a proper Diagnostics tool is key to know the real condition of the device. A mobile device testing application, like Asset Science’s, gives the ability to test devices on-the-spot to identify the exact value of every device.
Profiling user trends
A study done by the Trade-In company Decluttr shows iPhone value tends to drop by at least 40% in the first month after its launch, and then stabilizes in the months following (losing approximately 1% every month over time). On the other hand, Android devices tend to depreciate faster, a trend that has continued with the latest handsets.
Secondary Market Pricing trends
A 2019 (Q2) study done by B-Stock about mobile secondary market pricing shows that iPhone X continues to outperform previous and current flagship models. A/B grade iPhone X are selling for 48% of original retail value 21 months post launch. That’s 17% higher than average resell value. Standard month-over-month depreciation across top Apple and Samsung smartphones was 5.6 %.
Trade-in & brand loyalty statistics
The web site BankMyCell accumulated data from resale transactions in the US to better understand the mobile device upgrade cycle trends.
- Apple had 74.6% iPhone trade-in brand loyalty, with 12.8% heading to Samsung and 5.3% to LG.
- Samsung had 63.9% trade-in brand loyalty, with 17% heading to Apple.
- Only 65.9% iPhone XS owners remained with Apple, 18.6% headed to a Samsung device.
- Google had 51.0% trade-in brand loyalty, with 13.2% heading to Samsung.
- Google stands out as the brand that had the least owners going to Apple at 10.1%.
- LG, Motorola and HTC all fell below 41% brand loyalty at trade-in.
A flourishing market
Having a secondary mobile device market projected to be worth $50 billion by 2022 place the functional testing as a predominant element to maximize the trade value of your inventory. A research done by the firm Counterpoint has found that despite the slowdown for the primary market, the second hand market still growing, as people can hold on to their devices for longer and then resell them for considerable value.
What about personal data when trading-in a device?
Getting rid of all personal information from electronic devices before trading in a device is extremely important. That’s why a Data Erasure solution like Asset Science’s is key to ensure customer privacy is always protected.