One area where iPhone beats Android? Resale value

One area where iPhone beats Android? Resale value

We recently published an article that listed the many ways in which the Samsung Galaxy S III beats the iPhone 5. Even though the S III has been out for several months, it still manages to beat the iPhone 5 in all important categories, including RAM, screen size, resolution, storage space, price…the list goes on.

But Mashable.com recently released a report that suggests the iPhone has consistently beat Android devices in one area – resale value. Any time a new iPhone comes out, Apple users simply sell their old phone and put the money towards purchasing a new one. In fact, according to the Mashable study, iPhone users do this more than any other phone user – 31% of respondents to the study said they were planning on selling their iPhone.

Why are people so keen to sell their old iPhones? Well, iPhones retain a stunning 53% of their value when sold. That might not seem like a lot, but it’s a high margin above other types of smartphones. Android devices retain a measly 44% of their resale value, while BlackBerries retain 41%.

Almost every consumer product we buy loses its value over time.

Almost every consumer product we buy loses its value over time. Unless you’ve invested in a collector’s item, the smartphones, cars, and tech hardware we purchase will lose its value rapidly. The smartphone market is particularly volatile in that respect. New technology comes out every few months, and a phone that looked cutting edge one year ago might look obsolete today.

Almost every consumer product we buy loses its value over time.

Interestingly enough, Mashable’s study also looked at the total cost of ownership of each device. According to the report, the average iPhone will only cost $13.20 per month if the user plans on selling the device at the end of 18 months. Android phones, on the other hand, will cost 40% more than that, at $18.50 per month.

So, while an iPhone might seem more expensive than most other types of phones on the market, it might actually be a more affordable purchase if the user can resell it within a year or two. If the average resale value is 53% of its original value, then the overall price users pay for their iPhones might be less than half of the iPhone’s actual retail price. In other words, if you plan on selling your iPhone in the near future, you can effectively get half of your new iPhone purchase.

To read the full study by Mashable, click here.

Don’t get discouraged yet, Android users!

With Android devices taking up a larger and larger market share, consumers are starting to realize the superiority of the Android operating system. Top-tier devices like the Samsung Galaxy S III are outselling the iPhone around the world, and it’s only a matter of time before consumers start to realize the value of older Android phones.

Hopefully, Mashable will perform the same study a year or two down the road, when today’s HTC One X’s and Galaxy S IIIs are starting to hit the secondary resale markets.

Of course, we’ve been a bit tongue-in-cheek with our title. The iPhone 5 does beat the latest Android devices – like the Samsung Galaxy S 3 – in more than just resale value. It’s also lighter.