Piper Jaffray: Apple iPhone models retain more value than the top Samsung Galaxy models

Piper Jaffray: Apple iPhone models retain more value than the top Samsung Galaxy models
Investment firm Piper Jaffray has debuted its iPhone resale value index which is currently showing that the Cupertino based tech titan's iconic smartphone loses its value at half the rate at which Samsung's top models depreciate. The report uses eBay auction prices for the Apple iPhone 5, Apple iPhone 4S, Apple iPhone 4, Samsung Galaxy S III and the Samsung GALAXY Note II to gauge consumer demand for a particular device. From March 15th forward, Piper Jaffray took a weekly look at eBay auction prices of the last 50 phones sold to get a "fair value" of each model.

Piper Jaffray analyst Gene Munster said that the report is a snapshot showing what price U.S.consumers would be willing to pay for an unsubsidized handset. "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," said Munster.

The best performing model over the 8 weeks of the study was the Apple iPhone 4S which lost only 7% of its value. After that model came the Apple iPhone 4 which suffered an 8.8% drop in price over the same period of time. Next came the Apple iPhone 5 which lost 11.2% of its value during the two months. The Samsung Galaxy S III lost 13.7% of its value from March to May, while the Samsung GALAXY Note II price slumped 15%.

The median price of the Apple iPhone 4S went from $349 in March to $312 in May. During that same period, the median Apple iPhone 5 price dropped from $535 to $465. The median price of the Samsung Galaxy S III went from $360 to $320 from March to May, while the Samsung GALAXY Note II went to $444 from $550 over the 8 week period.

Munster said that a steep drop in price for the Apple iPhone models in the Piper Jaffray index would hint at an approaching launch for the next model. The falling price would be indicative of current iPhone owners selling their current handsets to raise cash for the next version of the phone. Munster adds that a larger drop in the price for the auctioned iPhone models could also show a preference for the Samsung Galaxy models. The current loss in value of the Apple iPhone models in the index apparently is not yet steep enough to hint at an imminent launch of the next iteration of the iPhone, or a switch in preference to the Samsung Galaxy devices.

Munster expects the price of the Apple iPhone to continue to decline as we get closer to the launch of the Apple iPhone 5S which Munster expects to see released by the end of September.

source: AppleInsider



1. dangchitrung

Posts: 89; Member since: Apr 04, 2012

I dont care.

6. daddysbeenabadgirl

Posts: 157; Member since: Jul 26, 2012

I dont know but Allen needs to make up his mind. First he calls the iPad a Piece Of S hit now hes saying it holds its value really well. He needs to stop drinking and typing.

20. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Noticed that too but with all the PA writers.

14. quakan

Posts: 1419; Member since: Mar 02, 2011

We know, you just wanted to be first, right?

25. dangchitrung

Posts: 89; Member since: Apr 04, 2012

no. what the helll is special about the first to post? i have used Note. I have been usine Note 2 and I'm waiting for the 3 man. I do not worry that my used ones will be worth $300 of $320.

23. EXkurogane

Posts: 863; Member since: Mar 07, 2013

This is a good thing for me. It proves how much people want one. So, when i want a specific phone subsidized to go along with a data plan, and the specific phone i want is not offered by the carrier i prefer. I buy that specific phone I wanted unlocked at full price, sign up a data plan with the iPhone subsidized (which is available on every carrier here), use the data plan on my unlocked phone i bought, and sell the iPhone at full price, probably 50$ lower than market price (like, if an unlocked model goes for $799, i sell it at $749), and the iDiots will definitely take the offer in a short period. In my country phones subsized by carriers are not locked, so, you can swap the sim card easily onto other phones. I have no idea how fans of iPhone think... Even the 3 year old iPhone 4 has a very high price and buying some newer mid-end phones at the same price has specs miles ahead of iPhone 4.

2. jroc74

Posts: 6023; Member since: Dec 30, 2010

This is news? Its been this way since the orig iPhone.

3. arsenaljimenez

Posts: 198; Member since: May 03, 2012

Because people are ignorant

8. raunak

Posts: 507; Member since: Oct 12, 2011

Or maybe because iphones feel premium and run smoother and have better cameras and have more powerful gpus along with better games collection in appstore. Believe it or not, samsung phones feel worse than chinese crap. And there is no difference between low end, midrange and high end phones when it comes to design or build materials. If i hand you a s3 and a s3 mini, could you really tell the difference if it werent for the size?

12. Whateverman

Posts: 3295; Member since: May 17, 2009

Holding a Note 2 right now. Feels pretty d@mn good to me. As a person who uses the both, the differences in "games collection" is so minimal, it makes that comment funny! The iPhone is a good phone, but it has a better resale value because it's an iPhone. Not because it's better at anything. People want what they think is popular and the iPhone is the popularity contest winner for sure. Even the lowly HTC Rhyme was a better phone that the iPhone IMO. And yes, the S3 and S3 mini look alike, but is that really a point for Apple when they've had only 3 designs for the last 6 years?

16. raunak

Posts: 507; Member since: Oct 12, 2011

"but it has a better resale value because it's an iPhone." this is exactly what i mean. iPhones are know for their quality BECAUSE they are better at some things I mentioned above. This is exactly why they are popular - they made reputation by premium quality and smooth, user friendly interface. iPhones arent famous because god said "let them be famous" lol. And yes, Apple has had only 3 designs in last 6 years, but atleast the designs are GOOD. SS, on the other hand, chose a CRAPPY design on the first place and is using it over and over again!!

19. Whateverman

Posts: 3295; Member since: May 17, 2009

When asked what they like about the iPhone, almost no one brings up the GPU, smoothness or the resale value. The reasons I've always gotten were, "It's cool." or "It has a lot of apps" or "My friend has one and I like it". They are better at some things, but that list gets shorter and shorter with ever new Samsung, HTC, Nokia, and even Blackberry device that gets released. Crappy design is a matter of opinion. I love the look of my Note 2, but I fall instantly asleep at the mear sight of an iPhone, it bores me just that much. That tiny little slab does feel good in the hand, but this Note feels much better. SS should make some different designs, but I like what the S and Note series devices look like.

21. SonyFindOneDroidple

Posts: 865; Member since: May 11, 2013

When i am asking my rich cousins why they like Iphone.. They can't say anything.. and i look so stupid talking to them whenever i mention PPI, Amoled, slcd3, bravia engine, s600, exynos, benchmarks, gorlla glass3, camera comparisons, website reviews etc etc.. it is the brand! Almost all the celebrities appearing on the media stuffs will show iphone..

30. iami67

Posts: 334; Member since: Oct 18, 2011

Iphone has a better resale vaule cause its made of cheap glass and break easy. People replace there broken product more often. People also when realize that they purchased junk want to sell the junk. People with s3 and notes keep there phone for yrs. Whateverman is right about the popularity vote. Just cause its popular dont mean its better. Its like voting for sr class president the most popular kid wins not the best kid for the job. People are sh==p and afraid to be diferent. That and the fact that yes iphone was first smart phone so if you purchase itunes your stuck with apple. Another reason i will never get apple. They lock you in for life by ripping you off with there sneaky gimmicks

22. WHoyton1

Posts: 1635; Member since: Feb 21, 2013

Run smoother...haha the same old apple insult but hate to disappoint you project butter cleared that all up! Better cameras...don't make me laugh just look at the test on this website...s3 wins!...may have more powerful gpus's but who cares about that when s3 and note 2 and s4 beat iPhone in every benchmark...and App Store...hate to disappoint you but google is only a bit behind and there is virtually no difference

29. iami67

Posts: 334; Member since: Oct 18, 2011

Raunak you really have no clue what your talking about do you. The iphone is cheap glass def not premium feeling at all. Slow processor some of the games made for it dont even run right anymore so def does not run smoother and better camera what are you smoking. everytime i see someone take a pic with a iphone it takes 5 secs to snap the shot and then the pic looks blurry. Everytime i see a pic posted on facebook i can tell by the blurryness it was taken by iphone. The new android can take 15 pics in the same time a iphone takes one. And unless you 80 even a 5 yr old can tell the def between a s3 and a s3 mini. The real question is can you tell the difference between a iphone 4 and a iphone 5 besides screen size

4. tadaa

Posts: 267; Member since: Apr 18, 2013

Why still follow gene munster? Haven't you told us already that this guy is a fanalyst and that we should not take too seriously what he says?

5. PermanentHiatus

Posts: 267; Member since: Jun 22, 2012

You don't need an analyst to know that Android phones fail in retaining value. That's a known fact.

7. iushnt

Posts: 3139; Member since: Feb 06, 2013

yaa that's true but I think that won't retain long for iphone..If they(Apple) don't make killer products anymore then their value will decrease much more..Their latest flagship(ip5) started to decline more due to lower demand and sales compared to s3..i know fans will argue that iphone sells more..its true iPhone 5 have impressive sales but still it has not outsold s3..I don't care throwing money at galaxy top ends because they are so worth compared to iPhone.but thats my personal choice according to my needs..i have used iphone 3g, 3gs, 4, ipod 2g, 3g and 4 and ipad personally but I got bored and switiching to galaxy models made me feel much worth..

31. iami67

Posts: 334; Member since: Oct 18, 2011

I still do not know where people get there stats. Yr to date 70% of smartphone sold are android. Only people that come in for iphones are little girls and old people. Little girls want the hello kitty case and the coach case and for old people they are great cause there arent a lot of options on an iphone. Androids or to much like real computers for old people

9. bfuller2006

Posts: 85; Member since: Oct 31, 2011

Im tired of people saying iphones run better i had an iphone 4s and i have an ipad 3 both runs slow a lot especially if im playing a game and a notification pops up

13. Whateverman

Posts: 3295; Member since: May 17, 2009

I know what you mean. I still have an original iPad... Can you imagine?

10. Dingy_cellar_dweller

Posts: 339; Member since: Mar 16, 2013

iphone must be the only thing in the world that doesn't go down in value when its used. What I want to know is if iphone are so good, why do people buy new ones?

15. quakan

Posts: 1419; Member since: Mar 02, 2011

The same reason YOU upgrade when your contract is up every two years...

11. tiara6918

Posts: 2263; Member since: Apr 26, 2012

That's why the iPhone continues to sell well, it's because of its value. People choose iPhone to show it off because it is the more expensive handset compared to other smartphones

18. quakan

Posts: 1419; Member since: Mar 02, 2011

I don't think the average consumer is buying because of its monetary value. They buy based on preference and influence. Also, the iPhone isn't really more expensive. The latest iPhone will cost the consumer $199 USD with a two-year contract like most flagships and of course keep in mind that there are other flagships that go for more at initial launch. While it is nice to know that your smartphone will retain most of its retail value 2 years from now, the thought of reselling something you are planning to buy or something you have recently purchased doesn't cross the mind of your average consumer.

17. Meleagru

Posts: 92; Member since: Dec 03, 2012

And I guess there is no correlation between the recent release of the S4 and the steeper price drop in Galaxy models ? If you're going to do a price comparison, do it over a year. Phone launches are seasonal and they do affect the resale value.

24. FlushGordon unregistered

To the mind of the gullibles,YES, the iPhone retains more value...

26. Equilibrium

Posts: 18; Member since: Nov 15, 2012

This is because apple sets the prices for iPhones and DO NOT reduce prices till a new iPhone is released. It is an artificial way to keep depreciation down and its disappointing that so many people still believe that it is worth the price. Bottom line you can get a Galaxy S3 or a Lumia 920 unlocked for a lower price than an iPhone 4s unlocked in my country. Easily explainable and nothing to do with actual depreciation but rather Apple being a stingy (but smart) company.

32. iami67

Posts: 334; Member since: Oct 18, 2011

Agree 100% with Equilibrium Apple the company rips of its customer and they just say please take more of my money. Apple doesnt come down in price because Apple threatens the carriers that if the phones get dicounted you will not be able to sell the product anymore. Why do you think you see android all diferent prices everywhere and apple the same price everywhere. Electronics change so much monthly never mind yearly. Do you think the iphone 5 cost the same today to make as it did the day it came out. No it doesnt. it probs cost Apple 1/3 the price to make now yet they still set it for the same price. Thats called ripping off the unknowldgeable cunsumer and taken advatage of them.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.