Why does Samsung lose 30% of its value in the first 6 months, while the iPhone only loses 10%?

Flagship Depreciation Curve: An Analysis of Value Dynamics and Residual Value Economic Factors for Samsung and iPhone (2024–2026)

In the high-tech market, smartphones are no longer just communication tools. They are increasingly viewed as a form of investment, and residual value directly impacts consumers’ purchasing decisions, brand loyalty, and overall market dynamics. In assessing the flagship segment dominated by Apple and Samsung, a significant difference in depreciation curves is evident: Samsung Galaxy S series devices historically lose about 30–50% of their value in the first six months, while iPhone models maintain a much more stable price, losing only 10–20% of their initial value. This phenomenon is not coincidental. It is driven by different pricing strategies, secondary market liquidity, software support cycles, and consumer attachment to the ecosystem.

2. Statistical Analysis of Residual Value and Historical Trends

Empirical data from major secondary market platforms such as BankMyCell and SellCell show a stark gap between iOS and Android ecosystems. On average, Android devices depreciate twice as fast as iPhones in the first 36–48 months after release. This trend begins from the first days after the device is unpacked and continues throughout its usage period.

2.1. Annual Depreciation Rate Comparison

Looking at the annual depreciation averages for devices with an initial price exceeding $699, Apple’s advantage is clear. In the first four years, iPhones lose an average of about 14.80% of their value each year, while Android flagships lose as much as 32.18% of their value annually.

Source: BankMyCell.

These figures indicate that the iPhone depreciation curve is significantly smoother, while Android devices experience the most significant value drop in the first two years. The Samsung Galaxy S21 series lost an average of 23.72% of its value in 2021, while the iPhone 12 series depreciated only 13.83% during the same period. An even more pronounced difference is seen when comparing the iPhone 11 (-10.72%) with the Samsung Galaxy S20 (-35.61%).

2.2. Depreciation Dynamics in the First 6 Months

The consumer-reported 30% versus 10% depreciation ratio in the first half-year is linked to Samsung’s aggressive price drop immediately after the launch phase. Although recent data from 2025–2026 shows that Samsung is gradually strengthening its position, the gap remains significant. For example, the iPhone 16 depreciated about 35.4% in the first five months, while the Galaxy S25 depreciated 46.6%.

3. Economic Strategies: Price Skimming vs. Premium Stability

The primary reason Samsung’s value drops so quickly is the manufacturer’s pricing strategy. Samsung often employs a Price Skimming tactic—launching the device at a very high price to maximize early buyer interest, followed by a gradual price reduction.

4. Secondary Market Liquidity and Demand Patterns

The depreciation curve is directly influenced by how quickly and at what price the device can be sold in the secondary market. Here, Apple has a significant advantage due to universal brand recognition.

• Global iPhone Liquidity: Demand for used iPhones is enormous across all markets. Wholesalers prioritize these stocks because price fluctuations are minimal.
• Samsung Segmentation: Liquidity here is more fragmented. The large model offering confuses buyers, and fears of faster component (battery, screen) wear reduce demand.

5. Depreciation Modeling and Technological Longevity

In the scientific literature, the depreciation curve is often described as an exponential function. The value of a device V over time t can be approximately calculated using the formula:

Where V₀ is the initial price, and k is the depreciation coefficient. In Samsung’s case, the coefficient k is significantly higher in the first months.

5.1. Software Support

When a user knows that a five-year-old iPhone 13 will still receive the latest operating system alongside the iPhone 17, the device’s value remains stable. Samsung has promised updates for up to 7 years in recent years, but overcoming market inertia takes time.

6. Brand Loyalty and Psychological Factors

Studies conducted using Structural Equation Modeling confirm that brand experience directly affects consumer trust.

7. AI Era: The Impact of Artificial Intelligence in 2025–2026

With the emergence of Galaxy AI and Apple Intelligence, the depreciation curve has begun to depend on the device’s ability to locally process AI tasks (on-device AI). NPU power has become a new measure of value.

7.1 Wholesale Trade and Grading Sensitivity

The value of the “iPhone” is less sensitive to minor cosmetic defects than that of “Samsung,” as the repair ecosystem is vast and global.