Brits who wait to trade-in their old mobile phones will lose out on £3.4k in their lifetime
As Apple prepares to launch its latest iPhone range in September, many phone users will be looking forward to upgrading to the newest tech. However, those who are looking to get their hands on the new model need to be aware of the best time to trade in their old device to get the highest return.
The value of older iPhones is set to plummet by an estimated 23% in the coming weeks, according to musicMagpie’s latest Phone Depreciation Report – https://www.musicmagpie.co.uk/phone-depreciation/
In a sixteen month period, the average phone will decrease in value by £95. With 35 upgrades throughout a person’s lifetime, a huge £3.4K is lost on average in a lifetime simply due to delaying the trade-in of old handsets.
Current iPhones due to drop drastically in value with the release of the new iPhone
When a new iPhone is released, on average we see the value of its predecessors drop by 10% in the first month alone, and by a total of 23% after 3 months.
If the iPhone 12 Pro drops 23% in value as predicted in the following three months of the new iPhone’s release, the owners of this iPhone will lose out on around £140 from trading in later.
Apple handsets are best for retaining their value
As in previous years, Apple holds the top spot for the brand that retains the most value, with iPhones losing an average of 41% of their value in the first 12 months and 60% by the end of a standard 24 month contract period. Samsung comes in second place, with its handsets depreciating by an average of 64% after 12 months and 77% after 24 months.
Unfortunately for Google and Huawei owners, their devices don’t fare quite as well, dropping in value by 83% and 87% respectively in the 24 months after launch.
Brits are losing out on £3.4k in their lifetime from delaying trading in their old mobile phones
By combining consumer trade-in habits with trade-in value data, musicMagpie estimates that on average consumers stand to lose £3.4k in their lifetime by holding on to old devices for too long.
musicMagpie CEO, Steve Oliver commented: “Our data shows that trading in old devices ahead of new phone launches is the way to get the best price for them. The money you made can then be used to help fund an upgrade.. Our trade-in offers are actually valid for 21 days, allowing people to lock in the pre-launch valuation and giving them time to ensure their new device has arrived before they send their old one to us.
“By regularly holding on to unused devices, people are losing out on the value they hold, which adds up to a considerable sum over time.”
Motivators for upgrades
The survey conducted by musicMagpie reveals that the top reason for getting a new phone is due to having a damaged phone (32%), followed by being eligible for an upgrade (24%) and a contract ending with an existing phone provider (18%).
The data also shows that the release of new models plays a big part in driving upgrades, as 27% of iPhone users stated they will be upgrading to the new iPhone 13 as soon as it is launched.
Of those who plan to upgrade to the iPhone 13, 16% said it would be to help facilitate working from home, as well as a further 30% upgrading to gain the use of 5G speed.
Steve Oliver added: “Whatever the reason for upgrading to a new phone, trading in unused devices is not only a savvy way to earn cash, it’s also a great way to keep old tech out of a landfill, minimising the impact of e-waste on the environment.”
The e-waste problem
Unused mobile phones and other tech devices that aren’t traded in or recycled responsibly can end up in landfills and pose all kinds of environmental issues. With 61% of Brits not trading in their phones as soon as they upgrade, this problem will continue to get worse.
So why don’t people trade in unused phones? musicMagpie’s survey found that 14% of Brits simply forget to trade in their old phone sooner, and 13% think it is too much hassle.
Previous research revealed Brits own £16.5 billion worth of technology they no longer use, with the average household owning 11 unused devices.
In this latest survey, 63% of Brits claimed they would be interested in trading in their phones if they knew it had environmental benefits, and 47% would even be interested in purchasing second-hand or refurbished phones too.
Steve Oliver added: “We’re on a mission to shine a light on the huge environmental impact e-waste is having on our planet, and the simple steps people can take to help reduce it”
To view the full report visit – https://www.musicmagpie.co.uk/phone-depreciation/