As most of us are aware, the value of an item begins to decline as soon as it is purchased. This is especially true for electronic gadgets such as mobile phones, tablets and fitness bands just to name a few. So which electronic gadgets depreciated the least this year in 2022? Trends reveal that certain electronic devices retain their worth substantially better than others. This occurs for a variety of reasons, including the demand a product generates and the brand's trust and reputation.
Which Electronic Gadgets Depreciated The Least
SellCell, the leading price comparison site for tech products in the United States, has released its 2022 Annual Tech Value Report, which examines the resale value of new or recently launched tech and compares it to the MSRP, providing valuable insight into the market leaders (and those brands which lag behind) with regard to value retention.
Due to its advantageous position, SellCell can provide a precise and rigorous valuation of technology, as it has access to resale pricing from 40+ tech buyers. Since its inception, SellCell has studied price data from this variety of buyback providers to estimate the current resale value. SellCell solely monitors prices from official independent buyback sellers, eliminating any grey-market price inflation and thereby reflecting a device's true value.
Most electronic devices have the most rapid depreciation in the first two months after release. After this point, gadgets will not recover much, if any, of their value and will instead experience a sluggish drop over the next twelve months. In terms of the future worth of a device, the first two months, therefore, establish the benchmark. This research provides insight into the most rapidly and slowly depreciating technologies since their introduction.
Main Takeaway About This Depreciation Report
- Sony's PS5 Digital Edition has had the slowest depreciation since its release 18 months ago. With a value decline of only 8.0 per cent and a monthly average depreciation of 0.4%, Sony is in a strong position.
- Microsoft is also seeing success. The Series X has only lost 21.0% of its value since its introduction, or an average of 1.2% per month. The Series S is not far behind, losing 31,4% of its MSRP at launch, or 1.7% each month.
- In seven months, the Nintendo Switch OLED's depreciation rate of 31.4% is identical to that of the Xbox Series S. However, Nintendo's 4.5% monthly depreciation portrays a different image.
- Regarding cellphones, Apple's iPhone 13 lineup performs the best, with an average depreciation rate of only 27.5% across all models. This amounts to a monthly depreciation rate of only 3.4% on average.
- In terms of value retention, Apple's iPhone SE 2022 edition disappoints with an abnormally high depreciation rate of 47.1% (an average of 23.6% in the two months since its release).
- With only seven months under its belt, Google's Pixel 6 has depreciated by an average of 48.5% across all smartphones, with a monthly decline of 6.9%. Nonetheless, this is not the poorest performing handset.
- Samsung's S22 series is the worst-performing smartphone lineup, with a depreciation rate of 51.6% in only three months since launch, averaging a horrifying 17.2% monthly fall in value.
- Apple essentially dominates the tablet market, with its best-performing iPad Pro 11 3rd Gen (2021) losing 42.3% since its debut 12 months ago or 3.5% per month.
- As with the iPhone SE 2022, the iPad Air 5th Gen (2022) exhibits terrible value retention, having lost 32.1% of its value in the two months since its launch, or an average of 16.0% per month.
- Since its release barely two months ago, the value of Samsung's Galaxy Tab S8 has dropped by a staggering 65.4%.
- In the war of wearables, Apple's Watch Series 7 has depreciated by 58.2% over seven months (8.3% per month) since its release. In nine months, the value of the Samsung Watch 4 declined by 76.0 % (8.4% per month). Thus, an almost identical monthly performance for both parties.
Summary of Electronic Gadgets Depreciation
SellCell evaluated the data to determine which electronic devices had the best overall performance in the months following their individual debuts. Note that, for the sake of this research, SellCell has analysed values for electronic devices in like-new condition from over 40 reputable buyback suppliers.
The table above illustrates some of the most and least effective technologies of the past 18 months. Given SellCell's prior research on value retention in the smartphone market, some of the results shown here are quite predicted, but there are also a few surprises.
Even 18 months after its release, the PS5 has experienced a total depreciation of only 8.1% or a $30 decline in value. This may come as a surprise to some. However, is this truly so shocking? As with every other tech company, Sony had semiconductor shortages, transportation problems, and a variety of other concerns during the COVID crisis.
Sony, on the other hand, released a system mid-COVID, which, due to the aforementioned challenges, resulted in limited availability at launch. The result of this is greater demand, especially considering the console shortage. Sony is still not matching this demand, hence the PS5's resale value remains extremely high.
Microsoft's Xbox Series X and S cannot compete with Sony. The Series X, which has likewise been on the market for 18 months, has lost 21.0% of its initial launch value, while the Series S has lost 31.4%. Given the length of time that has transpired since launch, we may still consider this a favourable outcome for Microsoft.
The Nintendo ship appears to be sinking the quickest among the three major consoles. It debuted the Switch OLED last year, and despite being only seven months old, its value has decreased by an unimpressive 31.4%. While you may compare this to the Series S, keep in mind that Microsoft's digital-only console has 11 months on the Switch OLED, making the Switch OLED the worst performer month-to-month.
Game Consoles Have The Most Retention Values
By delving deeper into the monthly numbers, we can determine the respective strengths and weaknesses of each brand. This is where the curveballs appear, with unexpected outcomes.
The consoles have been covered, but what about smartphones? As expected based on SellCell's prior study on smartphone value retention, the iPhone 13 series ranks highest in terms of value retention, as it has since its introduction. In eight months, the iPhone 13 has only lost 27.5% of its value across all models, demonstrating that purchasing an iPhone is a prudent investment.
Given the sustained success of the iPhone 13 lineup, now may be a good time to consider trading in your iPhone 13 if you've decided it's not for you or if you've discovered a device you'd rather use as your daily driver. The easiest method to obtain the highest price for your iPhone is to sell it as soon as possible, as its worth will continue to decline in the future.
Compare this performance to that of Samsung, and you will see the difference. In the three months that the S22 range has been offered, its models have lost an average of 51,6% of their value, or 17.2% per month.
In spite of this, the 2022 iPhone SE has performed poorly since its launch two months ago, shedding 47.1% (an average of 23.6% over the past two months) of its initial launch value. If there is insufficient demand, values will plunge, and it appears that the most recent version of the iPhone SE has not fared as well as Apple had planned in comparison to earlier iPhone models.
Sony is rarely mentioned in smartphone analyses of this nature. Nevertheless, the brand reappears in this data with the Xperia 1 III. It may have depreciated by 68.5%, but this is an average monthly depreciation of 7.6%, which is not horrible considering Apple and Samsung dominate the smartphone industry.
The Pixel 6 has not fared much better, shedding 48.5% of its value over seven months, or 6.9% per month. If Samsung's S22 range continues to decline, it may be valued less than the Xperia 1 III at the same point in its life cycle, seven months after its release. So that you can see just how close this competition is. Sony has scheduled a June release date for the upcoming Xperia 1 IV, which may result in a stronger release.
Tablets tell a similar tale. The Pro 11 (3rd Gen), the Pro 12.9 (5th Gen), and the Mini (6th Gen) iPads released by Apple in 2021 have performed well since their release, losing only 42.3%, 45.3%, and 35.2% of their values, respectively. Unfortunately, the 2022 iPad Air 5th Gen has not been as successful. The fact that the latest Apple tablet lost 32,1 per cent of its value in just two months demonstrates that demand was lacking and places it in second place behind the Mini (6th Gen), a tablet that is six months older.
Watches also make an appearance. The Galaxy Watch 4 has lost an average of 8.4 per cent of its value per month since its release, while the Apple Watch Series 7 has lost an average of 8.3 per cent per month.
More Depreciation Over The Next 12 Months
Given that Sony is in a solid position with its PS5, if not its prior Xperia 1 III, perhaps it can pull a rabbit out of the hat with the Xperia 1 IV, although it won't match the PlayStation 5's performance in terms of value retention.
Despite the comparatively poor performance of the iPhone SE 2022 and iPad Air (Gen 5), Apple continues to dominate the smartphone and tablet industries, with its flagship devices storming the rough sea of smartphones, Apple riding the crest of that specific wave.
As you can see, though, electronic devices lose their value rapidly, with few exceptions. Therefore, if you want to sell your phone or any other piece of technology, it will always be in your best interest to move swiftly, as the value will continue to decrease with each passing day.
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