Many consumers seem to generally think Apple’s flagship iPhone smartphone loses more value when it is resold than Android handsets because the iOS-based smartphone is more expensive than other phones. However, the latest research by an investment banker at Pipper Jaffray is going to change this perception, as his study reveals that the value of iPhones actually depreciate at less than half of the rate of the new Android handsets from Samsung. According to a report int he AppleInsider, Piper Jaffray has conducted his research by forming a resale value index by following the eBay auction prices of Galaxy S III, Galaxy Note II, iPhone 4, iPhone 4S and iPhone 5 in the U.S. This resale value index from Piper showed that in spite of being 46 percent more costly than Galaxy S III, iPhone 5 only sheds 11.2 percent of its value upon resale, whereas the Samsung smartphone losses value up to 13.7 percent. That is 2.5 percent more than the flagship handset of Apple.
Apart from this, Jaffray’s research also revealed the handsets, which have the lowest rate of depreciation. The iPhone 4S is the best smartphone in this regard because it manages to shed only 7 percent of its original value during the first two months. The second spot in this ranking was acquired by iPhone 4, as it has lost just 8.8 percent of its value, while the third position belongs to iPhone 5. The worst phones on this chart were Samsung Galaxy S III and Galaxy Note II, as they both lost more value than others. Given that Galaxy S III sheds 13.7 percent and Galaxy Note II losses 15 percent of their values.
“According to analyst Gene Munster, the index is “a pulse on what consumers are willing to pay for unsubsidized phones in the US. “The key takeaway from 8 weeks of data is that the iPhone is holding slightly more of its value compared to the top two Galaxy phones,” Munster wrote.
As noted in the report, decreased auction pricing for the iPhone would suggest existing owners are expecting a new version, and are flooding the market by selling off their handsets in preparation of a next-gen model. A dip in value could also point to a shift in preference toward the Galaxy lineup.”
However, Munster also said that the resale value of iPhone will continue to decrease, as the next iPhone seems to be making its debut in the coming months.
Source: iPhoneinCanada
Photo: iPhoneinCanada
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