The holidays are just around the corner. As the festive season rolls in, it's not just the lights, decorations and holiday cheer that get us excited. For many of us, it's also the prospect of scoring fantastic deals and bringing home the perfect gifts for our near and dear.Â
Smartphones are among the most sought-after items at this time, with retailers splashing out a slew of promotions to lure buyers. While it's easy to be swayed by the immediate appeal of a shiny new phone, there's a critical aspect that often goes overlooked amid the festive frenzy: resale value.
When you buy a high-quality phone, you're not just paying for its functionality and fancy AI features, you're also investing in its future worth. A phone with a high resale value allows you to recoup a significant portion of your initial cost when it's time to upgrade. This can make your next gadget more cost-effective and even help you justify spending more upfront on a quality device.
Whether you're a frequent upgrader, a premium buyer or just looking for the best holiday gift, understanding your phone's worth will help you get the most out of your purchase.Â
Read more: Nearly 70% of US Smartphone Owners Have Never Sold Their Old Phones: Here's Why
Maximizing resale value during the holidays
At $1,799, the Google Pixel 9 Pro Fold is one of the most expensive phones you can buy.
You can typically get the most money for your old phone right as a new model is released. Carriers and third-party retailers tend to offer the highest discounts on their new phones if you trade in your current handset. So if you're an iPhone owner, that peak time would be in September or October. If you're on team Samsung, new Galaxy S models are typically launched in January or February. But oftentimes you'll receive account credits towards your phone service bill rather than cold, hard cash. And that's why the holiday season can be an opportune time to buy or sell a phone. As people upgrade their devices or buy gifts, the demand for both new and used phones spikes.
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You can also sell your old phone to a resale site versus just trading it in to a carrier. Sometimes you'll get as much or even more than what carriers and third-party retailers will credit you for a trade-in. If you go this route, you can use the money you got from selling your phone towards a new one -- it just won't all happen in a single nice-and-neat transaction. Companies like Apple even have a trade-in page that shows how much you'll earn if you sell your phone to them.
Of course, you can only get as much for your phone as it's worth. A new iPhone 16 Pro or Galaxy S24 Ultra will likely have a higher resale value in two or three years than a budget model like an iPhone SE or Galaxy A35. So as you shop for a phone, it's helpful to keep in mind its value just as would a car or a house.
When does it make sense to factor in resale value?
Apple's latest four-member iPhone 16 lineup.
For many people, considering retention value can be a wise financial move, especially if you tend to upgrade frequently or wish to maximize the return on your investment. If you do plan to resell or trade in your phone, here are some considerations and motivations to keep in mind.
Frequent upgraders: A high resale value can substantially reduce the cost of new purchases, making frequent upgrades more financially viable.
Premium purchasers: When buying high-end phones, the resale value becomes more critical. These devices often come with a hefty price tag, so being able to recoup some of that cost by selling your old device can make a big difference.Â
Gift givers: A device that holds its value well will not only be appreciated for its immediate use but also for its longevity.
Samsung phones tend to hold their value better than other brands.
What factors influence resale value?
Brand and model: Apple and Samsung tend to retain their original price better than their competitors. Within a specific brand, certain models can retain their value better than others. For instance, the SellCell report showed that the iPhone 15 Pro Max (which originally sold for $1,199 and higher) held up its value better in the year following its launch than the base iPhone 15 models did (that first sold for $799 and higher).Â
Condition and care: Phones that are well maintained, with minimal wear and tear, tend to fetch a higher price years after their release. Ensure your phone is in good condition by repairing minor issues, cleaning it thoroughly and holding onto the original accessories and packaging if possible. Preserve your phone's condition by getting a case and screen protector. Take care of the battery by charging it when the battery is nearly completely drained and monitoring its health in your phone's settings app.
Age: Newer models usually have higher resale values compared to older ones.Â
Timing is key: Selling your phone before the launch of a new model can fetch a higher price, as buyers may be looking to get a good deal on the current model or manufacturers and carriers offer better deals. Conversely, selling during major sales events like Black Friday and Cyber Monday can also be advantageous, as demand for gifts like phones tends to increase.Â
Sell to independents: While trading in at Apple, for instance, might be a convenient way to recoup a significant chunk of your money, it'll often be a lower price than if you resell to a private buyer or through a resale website.
When might resale value matter less?
When it comes to buying a new phone, many factors come into play. A November survey by CNET found that more than 3 in 4 American smartphone owners (77%) say resale value was either not influential in their decision or they gave it zero consideration.Â
Considering resale value when buying a new phone is generally considered a smart decision, but it may not suit everyone. It's about striking a balance between your current needs and with future benefits. Here are some scenarios where it might not be as important.
Budget constraints: If you're currently on a tight budget, getting a phone that holds its value over years is likely not as important as what you're paying for it today. A midrange phone tends to depreciate faster, and the initial cost-savings often outweighs the potential resale value. Â
Long-term use: If you intend to keep your phone for several years, the resale value becomes less relevant. When buying a phone for years of use, focus on the durability, processor performance and software support. Companies like Samsung and Google support new models for seven years with security and software upgrades.
Secondary or emergency phones: For secondary phones or those intended for emergency use, resale value is not a priority. Practicality and reliability take precedence over potential future sales.
As you navigate the holiday deals, remember that a phone's resale value can play a crucial role in your decision. By considering factors like a brand's reputation, the device's condition and timing, you can make a smart investment that pays off in the long run.