Android phones lose trade-in value faster than iPhones, says report

iPhones depreciated in value by 45.4% in two years, whereas a premium Android phone dropped 71.4% from its original value

In this photo taken Wednesday, Feb. 19, 2020, staff chats with customers at an apple store in Beijing. Factories that make the world's smartphones, toys and other goods are struggling to reopen after a virus outbreak idled China's economy. But even with the ruling Communist Party promising help, companies and economists say it may be months before production is back to normal. (AP Photo/Ng Han Guan)
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Android smartphones lose trade-in value twice as fast than Apple iOS powered iPhones, according to a report that tracks annual price depreciation of gadgets.

In two years, an average Android phone would lose 71.4 per cent of its original value when traded in, BankMyCell, a New York research company said in its latest report. iPhones, meanwhile, retain the highest trade-in value, ensure good buyback offers and make upgrades more affordable for users.

"On average, iPhones lose 23.4 per cent of the value in the first year … [and] by the end of the second year, the total loss is almost 45.4 per cent of the original price," BankMyCell said.

"The scary news for over $700 [Dh2,576] Android flagship users is that the average iPhone's two-year loss is the same as their one-year depreciation."

A trade-in is an arrangement where users buy new smartphones at reduced prices in exchange for handing in their old devices to the company.

BankMyCell tracked the resale values of the 300 most popular phones last year.

There are more than 2.5 billion active Android devices – including leading brands such as Samsung, Huawei and OnePlus –  worldwide, with the platform supporting premium and budget-conscious devices, according to the operating system owner Google.

Over a four-year period, an iPhone's trade-in value will decline steadily, losing between 23.4 per cent to 33 per cent year-on-year.

Android devices with prices of $350 or less are likely to lose more resale value. They are worth half their value in only a year.

Budget models of Samsung, Motorola, LG, HTC and Google lose an average of 48.6 per cent of their trade-in value in a year. In two years, they lose 79.6 per cent of their original value, according to the report's findings.

A budget Android phone released at $299 would only be worth only $27 for trade-in after three years. For example, a Motorola One phone released for $349 in October 2018, will fetch only $43 in resale by December 2019.