Value Retention Rate
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Value retention rate is the current secondary-market price of a used or refurbished device expressed as a percentage of its original new retail price, used to compare how well different models, brands, and categories hold their value over time.
The calculation is simple: market price today divided by launch price. A phone that launched at EUR 1,000 and now trades at EUR 450 in Grade B has a 45% value retention rate at that grade. The inverse of the depreciation curve, it turns absolute prices into a ratio that can be compared across models with very different launch prices - a mid-range phone and a flagship, or a laptop and a smartwatch.
Value retention must be measured on a like-for-like basis to be meaningful. It differs by condition grade, by side of the market (resale prices retain more value than buyback prices, and the gap between them is the trade-in spread), by country, and by channel. A retention figure that mixes Grade A marketplace prices with Grade C trade-in offers says little about either.
Retention is not linear over time. Devices typically lose value fastest in the first year and around new model launches, then flatten, and some models see value rise in specific periods - for example when new-device prices or component costs rise and push demand toward the refurbished market. Tracking retention monthly by model reveals which devices are holding value better than their peers and which are falling faster than the curve predicts.
Operators use value retention in several pricing decisions: choosing which models to buy in volume, setting a guaranteed buyback value for forward trade-in and leasing, deciding how long to hold stock before a launch, and benchmarking against brand averages. A brand or model with consistently higher retention supports higher acquisition prices, because the downside if prices fall is smaller.
Frequently asked questions
How do you calculate value retention rate?
Divide the device's current secondary-market price by its original new retail price, then multiply by 100. Compare like with like: the same grade, the same side of the market (resale or buyback), and the same country.
Which devices have the best value retention?
Retention varies by model, grade, and market, and changes over time. Flagship models from brands with strong secondary demand generally retain more value than mid-range devices, but the ranking shifts around launches, so it should be checked against current market data rather than assumed.
What is the difference between value retention and depreciation?
They describe the same thing from opposite sides. Depreciation measures how much value a device has lost; value retention measures how much it still keeps. A device with 40% retention has depreciated 60% from its launch price.
Why does value retention matter for trade-in pricing?
Models that hold value well can be bought at higher trade-in prices with less risk, because their resale price is less likely to fall before the device is sold. Retention also sets the ceiling for any guaranteed buyback value in leasing or forward trade-in.
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