iPhone vs Android: The Resale Value Dilemma

• Android
• iPhone

Just like purchasing a car, the resale value of a mobile device should be a significant consideration when buying a new phone. It's a known fact that a used iPhone retains its value better than other high-end smartphones, making it a more cost-effective option in the long run. This might be a bitter pill for Android enthusiasts, but the numbers don’t lie.

"A smartphone may be the most important and perhaps most expensive technology in your life. We must consider all parts of the price calculation, including resale values." - Source.

The Resilient Value of an iPhone

An analysis of the resale market shows a staggering gap in the resale prices of iPhones and Android phones. For instance, consider a two-year-old Google Pixel 6. On B-Stock, a platform that buys and resells used smartphones, a used Pixel 6 averages around $185. On the other hand, a two-year-old iPhone 13 of similar condition fetches around $410. That’s more than double the value.

Why does an iPhone Retain More Value?

There are a few reasons why iPhones manage to retain their value for longer. One of the main reasons is Apple’s business model. The tech giant does not discount its new phones and releases new models on a predictable annual schedule. This predictability gives confidence to bulk phone buyers and directly impacts the resale or trade-in value of used devices.

Another factor is the availability of replacement parts for older iPhones and the abundance of technicians who know how to repair them. This reduces the cost for resellers to refurbish used iPhones, contributing to the increased resale value.

Consumer Demand for iPhones

Consumer demand also plays a pivotal role in this equation. The majority of used smartphones are purchased outside the United States, and a large number of these consumers are eager to own a used iPhone. This international demand helps maintain the high resale value of iPhones.

What Does This Mean for You?

The implications of these resale values are complex. Yes, if you are upgrading your smartphones frequently, then choosing an iPhone could be a more financially sound decision. However, if you hold onto a smartphone for many years or if you buy lower-tier smartphones, then the resale value becomes a less significant factor.

Additionally, while Apple rarely offers discounts on new iPhones, discounts are usually available on high-end new Android phones. These discounts could offset the lower resale value of an Android phone.

Ultimately, the decision should not be based solely on price. Personal preference, usability, and device features are equally important. But, if you're someone who likes to keep up with the latest technology and frequently upgrades your devices, the iPhone could be the more economically rational choice.