Depreciation curve

All smartphone models depreciate, but curve shape varies by brand and segment. Flagship iPhones typically decline more slowly than comparable Android models, and curves often steepen around two predictable events: successor model announcements and end-of-support milestones. Understanding model-specific depreciation curves lets pricing teams move proactively on buyback and resale prices before major market shifts are fully reflected in competitor pricing.

Depreciation curves are not smooth. The rate of decline tends to be fastest in the first three months after a device's retail launch, as early adopters of the new model flood the secondary market with their trade-ins. The curve then typically flattens into a slower steady decline until the next successor announcement causes a second acceleration. Operators who map historical depreciation curves for key models can anticipate these inflection points and adjust buyback offer levels ahead of time rather than reacting after resale prices have already moved.

Grade-level depreciation curves also diverge over a model's lifecycle. Grade A values for older models tend to compress relative to Grade B as the model ages, because the pool of genuinely pristine examples shrinks over time while demand for the model overall declines. This means grade spread narrows as a model ages, and condition-based pricing rules that worked well for a model in its first year need to be recalibrated as it moves further along its lifecycle.