The Depreciation of Smartphone Value: Insights from the Samsung Galaxy S7 Edge and S8

Understanding Smartphone Depreciation

With the rapid advancement of technology, smartphones have become one of the most common gadgets in today's world. However, the value of these devices doesn't last as long as we would like. As new models hit the market, older smartphones begin to depreciate rapidly. This article will focus on the Samsung Galaxy S7 Edge and S8, providing insights into how much their value decreases over time.

Depreciation in the Smartphone Market

The smartphone market is a vast and ever-evolving space where devices are released almost every six months. This regular release cycle means that the value of your smartphone can drop drastically within a short period. When a new flagship model is released, most consumers will opt for the new, rather than holding onto the older models. This trend is particularly evident with Samsung's flagship series, which include the S7 Edge and S8.

Depreciation Trends of the Samsung Galaxy S7 Edge and S8

According to industry experts and experienced users, the Samsung Galaxy S7 Edge and S8 will see significant depreciation in value. Starting from their release in 2016 and 2017, respectively, these devices will lose a considerable amount of value over time. The S7 Edge is estimated to retain around 30-40% of its initial value after a year, providing around $200-$300 in resale value. In contrast, the S8, given its more recent release, might hold a slightly better position, maintaining an estimated resale value of around $400.

One key factor influencing smartphone depreciation is the release of newer models. Samsung, along with other major manufacturers, continues to release updated versions of their flagship smartphones every six months. This creates a cycle where old models become less desirable, leading to a faster depreciation rate. In just over a year, flagship models like the S7 Edge and S8 can see a 70% depreciation in value, making them less attractive to most consumers.

The Long-Term Depreciation of Smartphones

Over a longer period, smartphones often become completely obsolete. In about three years, the value of your smartphone can drop to as low as 5% of its initial price. At this point, the device might only be valuable for its components. This trend is consistent across all smartphone brands, including Samsung, with the exception of Apple phones, which hold their value slightly better.

It's important to note that iPhones, while generally maintaining a higher resale value, still depreciate over time. Users can expect to recoup around 60% of the original price of an iPhone within the first five years of purchase. However, the rate of depreciation is still significant, and consumers should be prepared for a substantial drop in value over time.

Smartphone as an Investment

Smartphones, despite their high initial cost, are not considered a good long-term investment. Maintaining their value over time is challenging due to the rapid technological advancements and the regular release of new models. In less than five years, any smartphone will have depreciated to nearly 0 value when it becomes obsolete.

The key takeaway is that smartphones are best seen as tools for communication and entertainment, rather than a traditional investment. While new models may offer improved features and efficiencies, the overall value of older devices will continue to drop, making it essential to consider the potential resale value before making a purchase.

For those looking to upgrade sooner rather than later, it's essential to be aware of the depreciation rates and planning accordingly. This can help in making informed decisions about future purchases and ensuring that the expenditure on a new smartphone is justified.