Electronics start losing value the moment they leave the store. But the rate of that loss is not uniform, and it is not random. Tech depreciation follows a predictable curve that varies by category and brand, and once you can read that curve you can buy used at the right point and sell before the floor drops out.
Quick Answer
Most electronics lose the largest share of their value in the first 12 months, then depreciation slows over years two and three. Smartphones fall fastest (an average iPhone loses roughly 25-30% in year one, the average Android closer to 50-60%), laptops and tablets fall more slowly, and gaming consoles can actually hold value early when supply is tight. The single sharpest drop usually lands right after a new model is announced.
For buyers, that first-year cliff is exactly why used gear sells for 30-60% below new. For sellers, it is a clock that starts ticking the day you buy.
Why Electronics Depreciate
Tech depreciation is the loss in resale value over time, and in consumer electronics it is driven by three forces working together. New model releases make older hardware feel dated. Software support windows define how long a device stays secure and current. And market supply rises as upgrade-cycle sellers list their old gear while buyer attention moves to the newest option.
This is a faster cycle than most other assets. A five-year-old car can still be someone’s primary vehicle. A five-year-old smartphone may no longer get OS updates, may struggle with current apps, and lacks features that newer buyers now expect. The obsolescence clock simply runs quicker for tech, which is why depreciation curves here are steeper than almost anything else you own.
Two moments trigger the steepest drops:
- A new model is announced or released. The previous generation instantly becomes last year’s model, and used prices fall within days.
- A device loses software support. No more OS updates or security patches makes a device a harder sell and pulls its floor down.
Knowing where a device sits relative to those two moments tells you most of what you need to know about its price, whether you are buying or selling. Swappa’s completed-sale price data reflects what these curves actually look like in real transactions.
The Shape of the Curve: First Year, Then a Slowdown
The most important thing to understand about tech depreciation is that it is front-loaded. The first 12 months after launch are the highest-loss period for nearly every category. Early demand is driven by buyers willing to pay full retail, so the gap between that retail price and the settled used price opens fast.
After that first year, the slope flattens. A device that already shed most of its first-year value in months one through twelve loses far less in years two and three. This is why used tech in the roughly 18-to-36-month window tends to be the sweet spot for buyers: the steepest part of the drop is behind it, but the device still has real useful life left.
Layered on top of that smooth curve is a sharp, event-driven step down. For flagship phones the single biggest single-event drop is not gradual at all. It happens in the tight window around a new-model announcement. Used and trade-in prices can fall roughly 9-15% within 24 to 48 hours of an iPhone announcement, and around 20% (sometimes 20-30% on recent models) once the new phone actually ships. The same pattern shows up for Samsung Galaxy launches, Google Pixel releases, and new console generations.
Depreciation by Category
Depreciation rates vary widely across the electronics landscape. The table below uses market estimates from 2025-2026 resale reports, expressed as ranges, since actual value retention always depends on the specific model, storage tier, condition, and timing. Treat these as editorial market observations, not guarantees.
| Category | Typical year-1 retention | Longer-term retention | What drives it |
|---|---|---|---|
| iPhone (flagship) | ~60-70% kept (loses ~25-30%) | ~60-70% at 2 yrs | Long OS support, strong ecosystem demand |
| Android flagship (Samsung Galaxy S) | ~40-50% kept | ~45-55% at 2 yrs | Depreciates ~2x faster than iPhone; gap closing |
| MacBook (Apple Silicon) | ~50-60% kept (loses ~15-20%/yr) | ~40-60% at 3 yrs | Strong demand, long support; Apple Silicon best |
| Windows laptop | ~30-50% kept (loses ~50-70% yr 1) | ~25-40% at 3 yrs (premium ultrabooks) | ~30%/yr average; spec tier and brand matter |
| iPad | High retention | Ages gracefully | Long software support, far better than Android tablets |
| Android tablet | Lower retention | Can lose ~75-84% over multi-year spans | Short support windows, weak used demand |
| Gaming console (PS5) | Can hold ~70-80% of retail | Falls once supply normalizes | Constrained supply + exclusives prop up early value |
| Nintendo Switch | Very low depreciation | OLED near-retail years out | Steady demand, long product life |
| Xbox | Depreciates a bit faster | Moderate | Game Pass reduces hardware-generation importance |
A few patterns are worth pulling out:
- Smartphones depreciate fastest, but not equally. The average iPhone keeps roughly 60-70% of its value after a year, while the average Android keeps closer to 40-50%. Android depreciates about twice as fast as iPhone overall, though Samsung Galaxy S flagships have been closing the gap, improving around 5 points from 2022 to 2025, with the titanium S Ultra holding value best.
- Laptops fall slower than phones. A MacBook loses only about 15-20% per year and Apple Silicon models hold up best. Windows laptops can lose 50-70% in year one, but premium Dell, HP, and Lenovo ultrabooks still retain 25-40% at three years.
- Tablets split sharply by brand. iPads age gracefully thanks to long software support and hold value far better than Android tablets, some of which have lost 75-84% over multi-year spans in resale studies.
- Consoles break the rule. Gaming consoles can actually hold or even gain value early when supply is constrained and exclusives are in demand. A PS5 has retained roughly 70-80% of retail in its first couple of years, and the Nintendo Switch is famous for very low depreciation. Note that a missing original controller can cut a console’s resale value meaningfully.
To go deeper on which brands and models defend value best, see Which Brands Hold Their Value Best?
What Depreciation Means for Buyers
The front-loaded curve is the buyer’s biggest advantage. When you buy used, the original owner already absorbed the brutal first-year loss, and you pick up the device after the slope has flattened. That is the core reason used electronics on Swappa typically run 30-60% below new retail, varying by category, condition, and timing.
The best buying window is usually a few weeks after a new model launches. By then, upgrade-cycle sellers have listed their previous-generation gear in volume, prices have settled, and you can often find excellent-condition devices well below their original price. You are buying mid-curve, which is the most efficient point on the value-retention slope.
Category matters for how much you save. The fastest-depreciating categories (mainstream Android phones, Windows laptops, Android tablets) give you the deepest discounts off retail. The slower-depreciating categories (iPhones, MacBooks, iPads, consoles) cost more used but tend to hold their value better if you resell later, so the resale floor is part of the deal.
Swappa’s buyer fee is a flat 3%, lower than auction-site buyer premiums, and every listing is staff-reviewed with a clean IMEI/ESN and no activation lock before it goes live. For condition and battery-health context before you buy, see Used Electronics Condition Grades, Explained.
What Depreciation Means for Sellers
For sellers, the lesson is about timing. Because so much value is lost in the first year and at announcement events, when you sell matters as much as what you sell.
The rule of thumb: sell before the next announcement, not after. Once a new flagship is announced, used prices for the current generation start falling within days, and listing into that wave means competing with every other upgrade-cycle seller at the same time. Listing 2-4 weeks ahead of a known release cycle (Apple’s late-August or early-September iPhone event is the most reliable) captures the higher pre-announcement price.
Condition is the other lever you control. A device in excellent condition commands a meaningful premium over the same model in good or fair condition, even after depreciation has done its work. Clean, fully functional, honestly described listings sell faster and for more.
For the full month-by-month timing playbook, see the best time to sell. And for the whole resale-value picture across pricing, brands, and data, start at the pricing and resale value hub.
One guardrail: if a device is broken, water-damaged, or has cracked glass, it will not pass Swappa’s listing criteria. In that case the smarter move is to buy a replacement rather than try to list the damaged unit.
FAQ
How much value does a phone lose in the first year?
It depends heavily on the brand. The average iPhone keeps roughly 60-70% of its value after one year, meaning it loses about 25-30%. The average Android keeps closer to 40-50%, losing about half its value, because Android depreciates roughly twice as fast as iPhone. Across all models the year-one loss can range anywhere from 30% to 80% depending on brand, model, and demand.
Why do iPhones hold value better than Android phones?
iPhones benefit from long OS support windows, strong ecosystem demand, and steady resale interest, so they keep around 60-70% of their value even after two years. The average Android depreciates about twice as fast, though Samsung Galaxy S flagships have been closing the gap, with the titanium S Ultra holding up best.
Do laptops and tablets depreciate slower than phones?
Generally yes. MacBooks lose only about 15-20% per year and Apple Silicon models hold up especially well, while iPads age gracefully thanks to long software support. Windows laptops and Android tablets fall faster, with some Android tablets losing 75-84% over multi-year spans. Phones, especially mainstream Android, are still the fastest depreciators overall.
Why do gaming consoles sometimes hold their value?
Consoles follow a different pattern from phones. When supply is constrained and there is strong demand for exclusive titles, a console like the PS5 can retain roughly 70-80% of retail in its first couple of years. The Nintendo Switch is known for very low depreciation. Value usually falls once supply normalizes or a new generation arrives, and a missing original controller can reduce resale value meaningfully.
When does the biggest drop in resale value happen?
Two moments dominate. The first is the opening 12 months after launch, which is the steepest part of the curve for most categories. The second is the announcement of a new model: used and trade-in prices can fall roughly 9-15% within 24 to 48 hours of an iPhone announcement and around 20% once the new model ships.
Is it worth buying a two-year-old phone?
Often, yes. By the two-year mark most of the steepest depreciation has already happened, so the price has stabilized while the device still has useful life left. The key variables are remaining software support years and physical condition. You can check real completed-sale prices at swappa.com/prices.
The Takeaway
Tech depreciation is the used market’s most predictable force, and it cuts both ways. For sellers it is a clock counting down from the day you buy new, with the loudest ticks in year one and at every announcement. For buyers it is the mechanism that makes used tech a better deal than retail across almost every category.
The categories that fall fastest (mainstream Android phones, Windows laptops, Android tablets) are where buying used delivers the deepest savings. The categories that hold value (iPhones, MacBooks, iPads, consoles) cost more used but protect your resale floor. Either way, reading the curve beats guessing at it.
For the full resale-value picture, start at the Used Tech Resale Value: The Complete Pricing Guide.
