Every device you own — whether it’s a phone, tablet, laptop, or gaming console — starts losing value the moment you take it out of the box. This steady drop in worth is called depreciation, and for electronics, it can be especially fast.
If you’ve ever wondered why your phone value drops over time or how to get more cash when you sell used electronics, understanding depreciation of tech devices is essential. In this guide, we’ll explain how depreciation works, what factors accelerate it, and strategies you can use to slow down the value drop and increase resale value.
What Is Depreciation for Electronics?
Depreciation is the reduction in value of an asset over time due to age, wear, and market demand. For electronics, depreciation happens faster than in many other categories because:
- New models are released frequently (usually every year for smartphones).
- Technology advances quickly, making older devices feel outdated.
- Consumer demand shifts toward the latest models.
For example:
- A new flagship phone might lose 20–30% of its value within the first year.
- By year three, many phones are worth less than 40% of their original retail price.
(Related: Best Time of Year to Sell Your Old Phone)
Why Electronics Lose Value
Several factors explain why devices depreciate so quickly:
1. Age of the Device
- Each year that passes lowers resale value.
- Even if the phone works perfectly, it will eventually feel outdated.
2. Condition
- A phone in like-new condition holds value much better than one with scratches or cracks.
- Functionality issues (like battery wear) speed up depreciation.
3. Brand Value
- Premium brands like Apple and Samsung typically hold resale value longer than budget brands.
- Lesser-known brands depreciate much faster.
4. Software Support
- Devices with longer update cycles (like iPhones) stay desirable longer.
- Outdated software means limited functionality and lower demand.
5. Market Supply and Demand
- If a device was mass-produced, it depreciates faster than a limited edition or rare color version.
- High demand models can slow down depreciation.
(Related: Why Flagship Models Hold Their Value Longer)
Average Depreciation Rates for Phones
On average, phones lose value at these approximate rates:
- First year: 20–30%
- Second year: Another 15–20%
- Third year and beyond: Value may drop to 40% or less of original retail price
This is why selling earlier often means a higher payout. Waiting too long can turn a once-expensive device into something worth only a fraction of what you paid.
(Related: Upgrading? How to Sell Your Old Device First)
How to Slow Down Depreciation
While depreciation is inevitable, you can take steps to minimize the value drop and maximize resale.
1. Keep the Device in Like-New Condition
- Use a protective case and screen protector.
- Clean it regularly and avoid liquid or impact damage.
(See: How to Keep Your Phone in ‘Like New’ Condition)
2. Sell Before Major Launches
- Resale prices often dip right after a new model is announced.
- Selling a few months before can help you avoid sudden drops.
(See: Best Time of Year to Sell Your Old Phone)
3. Hold Onto Accessories and Packaging
- Selling with the original box and charger boosts perceived value.
(See: Should You Sell With or Without Accessories?)
4. Choose Premium Models
- Flagship devices depreciate slower due to better build quality and brand reputation.
5. Avoid Long Delays
- Waiting until the device is too old reduces demand and resale opportunities.
Depreciation Beyond Phones
While smartphones are the most obvious example, all electronics depreciate — laptops, tablets, cameras, and even game consoles.
- Laptops: Premium brands like Apple or high-end Lenovo hold value better than low-cost brands.
- Cameras & Drones: Professional gear can hold value well, but entry-level models drop quickly.
- Gaming Consoles: Standard versions depreciate, but limited editions or rare bundles can even appreciate in value.
The Role of Brand Loyalty
One reason certain devices hold their value longer is brand loyalty. For instance:
- Apple: iPhones often retain 50% or more of their value after two years because of strong demand and ongoing software updates.
- Samsung: Premium Galaxy S and Z series models hold value well, while budget Galaxy A models depreciate faster.
- Budget brands: Devices from smaller companies depreciate quickly due to weaker resale demand.
If you want to get the most for your device, choosing a brand with strong resale value matters before you even make the purchase.
How Depreciation Affects Trade-In vs Selling
When deciding whether to trade in or sell your device:
- Trade-In Programs:
- Convenient and instant but usually offer lower payouts.
- Value is set by the retailer and doesn’t reflect collector demand.
- Direct Selling:
- Often yields higher cash offers, especially for rare or limited edition models.
- Requires more effort (listing, shipping, etc.), unless you use a service like Gizmogo.
(Coming Soon: Selling Multiple Devices? How to Bundle for More Cash)
Real-World Example of Depreciation
Imagine you bought a flagship phone for $1,000:
- After 1 year: Worth around $750
- After 2 years: Worth around $500–550
- After 3 years: Worth around $400 or less
If you waited too long, depreciation could cost you hundreds of dollars. But selling earlier, with original packaging and accessories, could maximize your return.
Final Thoughts
Depreciation is unavoidable, but it doesn’t have to cost you as much as it usually does. By understanding electronics depreciation rates and learning how to slow them down, you can:
- Sell at the right time
- Maintain your device in top condition
- Choose premium models that hold their value
- Include packaging and accessories for added resale power
The key takeaway? The longer you wait, the less your device is worth. But with the right strategy, you can maximize resale value and get significantly more cash for your used electronics.
For a complete guide, see our main resource: (Coming Soon: Maximizing the Value of Your Used Electronics).