How much is your mobile really worth?
Since the iPhone was released in 2007, Apple Inc. has released 13 upgraded models through to 2017. While the original models may garner more attention due to nostalgia, the iPhone 3GS will now get you around £20, if you’re lucky. That’s a far cry from the £274 initial fee charged in 2009, as part of an 18-month tariff at £34 a month.
Technology moves fast. What’s new and innovative one year is old news the next, and it’s positively stone age a few years down the line. This means that even if you’re investing in the latest technology, it might not be the latest technology for very long.
Mobile trade-in comparison service, Sellmymobile, released figures in 2018 to demonstrate how much value a mobile phone loses from the time it is purchased. They found that, on average, a top-end mobile phone will lose around £20 every month from its release. As you may expect, when a new handset goes on the market, the value of its predecessor falls dramatically. When the iPhone X was launched, the iPhone 7 immediately lost between 10% – 20% of its previous resell value.
The waiting game
Of course, something’s got to give, and the depreciation of the mobile can’t go on indefinitely. Experts suggest that even though your phone will not attract the same value as what you initially paid, you can still get a fair price when you trade it in. It’s suggested that the longer you wait, the less you will get. At the same time, constantly upgrading a perfectly good model will probably prove more detrimental to your cash flow overall.
Apple vs. Samsung
The great debate continues as to whether Apple or Samsung is superior. Studies show that they both tend to lose their value at a very similar rate. That said, a report by reseller Bank My Cell revealed that the value of the iPhone X depreciated a lot slower than similarly priced models by Samsung, Huawei, LG and others. On the flip side, the Galaxy S9 fell by over 60% in value over the same period.
When you do choose to resell your mobile, make sure to do your research first to ensure you’re not selling yourself short. If you’re selling it via Gumtree or Facebook Marketing, make sure to be upfront about its condition, offer plenty of description and take lots of pictures.
As for insurance, don’t worry. Many standalone policies can either be transferred to a new mobile or taken out on a monthly basis. Reckon you’re covered by your home insurance? It might be worth checking your excess, or if it covers for usage outside of the home. If you have any questions, R Collins & Co can help you get to the bottom of it. Just get in touch on 01977 558391.