Samsung phones are expected to drop up to 21 per cent of their resale value in the next few weeks, new data has revealed.
If you have an old Samsung handset lying around, now could be the time to sell - as the price they command is set to plummet in the coming days and weeks, according to research from Music Magpie.
The technology resale website found that Samsung devices could lose up to 12 per cent of their value following the first month of a new model being released, and up to a further 21 per cent after three months.
The new Samsung Galaxy S21 smartphone is due to be released on 29 January in the UK
Therefore, with the launch of the Samsung Galaxy S21 on 29 January, customers are being encouraged to sell now if they want to secure the best deal.
If sold soon, customers trading in a Samsung Galaxy S20 can expect to earn up to £310, while those with a Samsung Galaxy S20 Ultra could get up to £364.
However, these phones might only be worth £245 and £288 in three months' time. It is worth pointing out there though that many people will be happy with their S20 and won't feel the need to simply bag the latest smartphone.
The Galaxy S20 was launched just under a year ago in March 2020.
Those who have older Samsung models can expect to get much less for their phones, with Samsung Galaxy S8 holders likely to get £90.
People may also want to reconsider buying a new phone as soon as it is released given that, on average, new Samsung models lose 64 per cent of their value after being on sale for 12 months and then 74 per cent after 24 months.
|Samsung model||Maximum trade-in price |
as of 11 January 2021
|Galaxy S20 Ultra||£364.10|
|Galaxy Note 8||£185.00|
|Galaxy Note 9||£200.00|
|Galaxy Note 10||£302.00|
|Galaxy Note 20||£430.00|
|Source: Music Magpie (prices correct as of January 2021)|
It can happen even sooner, however. Last year, the Samsung Galaxy Fold and Samsung Galaxy Flip saw huge decreases in value after only one month on the market following faults with the display when the screen was folded.
One month after launching, the Galaxy Fold's value dropped by a huge 75 per cent and the Galaxy Flip dropped by 73 per cent.
Liam Howley, chief marketing officer at Music Magpie, said: 'With the imminent launch of the Samsung Galaxy S21, lots of people are planning to upgrade.
'From our data, it's clear that those people should sell their old phone now rather than wait around to get the best price for it.
'Trading in your old phone is good for the environment too, and encourages a circular economy whereby phones are recycled, refurbished and reused - so it's something anyone planning to upgrade should consider.'
Which phones depreciate in value the most?
Music Magpie hasn't just looked at Samsung devices, however. It has also used its data to see how different brands of smartphone retain their value.
It found that, while the price of a new phone was increasing, pricier handsets were retaining their value much better than cheaper models.
For example, the iPhone 11 and 11 Pro managed to retain their value the most in the first six months after release.
The value of an iPhone 11 dropped by 34 per cent, falling from £729 to £481, while the price of an iPhone 11 Pro fell by 35 percent, from £999 to £649.
Meanwhile, cheaper models such as the Google Pixel 3a lost almost twice that amount. The phone, which cost just £399 on release, saw its value drop by 64 per cent.
The iPhone 11 and 11 Pro retained their value the most out of the phones examined
On the whole, iPhone was the brand that retained the most value.
On average, the Apple handsets lost 43 per cent of their value in the first 12 months, and 61 per cent by the end of a standard 24-month contract period.
However, Apple's newest model is faring less well than the iPhone 11. The iPhone 12, which has been on the market for three months, has lost 40 per cent of its value so far.
Samsung shares the number two spot with OnePlus in this year’s report, with Galaxy and OnePlus handsets losing an average of 64 per cent of their value after being on sale for 12 months.
The Samsung Galaxy Note 10 5G has had one of the worst depreciations for the brand, losing 71 per cent of its value 12 months after release.
Google came in third, as its phones depreciated by an average of 72 per cent in the first 12 months after their release, and by 79 per cent after 24 months.
The Google Pixel 3a and Google Pixel 3aXL depreciated the most out of all the Google handsets, with a loss of 72 per cent in the first 12 months after release.
The Google Pixel 2, an older model, lost just 59 per cent of its value in the same amount of time.
Meanwhile, Music Magpie found that Huawei models depreciated by 74 per cent on average in the first 12 months, and by 88 per cent in the 24 months after release.
One of its pricier handsets, the Huawei Mate 30 Pro brought out in 2019, had a purchase price of £899.99 on release, but just six months later it was worth less than £144.
The most commonly traded-in handset on the Music Magpie website in the 12 months up to August 2020 was the iPhone 7.
The handset also only dropped in value by 44 per cent in the first year of its release in 2016.
The second most-sold model was the iPhone 8, which also retained its value well, losing just 41 per cent in the first 12 months of release the following year.
Music Magpie calculated its data using its average trade-in prices across each of the models over a period of time. Data for the iPhone 12 and all Samsung models, excluding the Samsung Galaxy Fold and Samsung Galaxy Flip, is accurate as of January 2021. All other models are accurate as of August 2020.