Comparison of iOS vs. Android Marketplaces
iOS and Android are the two main operating systems on the market, and each has its own ecosystem. Android functions in an environment of intense competition among several companies, but iOS only operates on Apple products.
When it comes to buying and selling used phones, iPhones typically bring in more revenue than Androids. The answer to, “Why do Apple products hold their value?” depends on six main factors:
1. Hardware
One of the key differences between Android and Apple iPhone resale value is hardware. Apple computers and iPhones have a reputation for a longer life than Android products. As a result, Apple products typically retain their resale value, even when it comes to tablets and laptops.
Another key factor is hardware lock-in. If you want to run iOS or MacOS, you have to buy from Apple. This means a more restricted supply than for Windows and Android devices. Basic economics predicts that a smaller supply means higher prices, which is another reason why Apple phone values tend to be higher.
2. Desirability
Another reason why iPhones hold their value is desirability. The Apple brand is minimalistic and sleek, synonymous with cool. Apple spends significantly on advertising and product placement. The Apple brand is seen in TV shows and movies because Apple pays to put it in front of those audiences.
The software also plays a part. iPhone software is generally popular, including Messages, Facetime, and more programs that have loyal fans. People who prefer the Apple brand and software are willing to pay more.
3. Volume
The only competition for a new iPhone is previous models. Each year, Apple produces only one or two new iPhone models. Android produces between 200 and 300 new models a year, which drives the price of each model down.
4. Market Release
When Apple releases a new iPhone model, it is almost always a flagship model. Apple takes time to develop new models and listens to what the market wants.
Android releases a wide range of phones each year, including flagship, mid-range, and budget models. When Android releases a new mid-tier phone, it is usually priced similarly to a used flagship one. When Apple users want a mid-tier phone, they must turn to the used phone market.
One thing Android phones are known for is their variety. You can choose from a wider selection of phones each year and expect to pay less for them than with iPhones. Android phones market their camera, sound, and gaming capabilities. Resale value, however, remains a key draw to iPhones.
5. Support
One thing that affects Apple phone value is that iOS software upgrades are supported for five or six years after they come out. This means that an older iPhone is still supported. Also, it means that there is a potential for upgrading the old phone, rather than buying a new one.
With the typical Android phone, the phone might have only two years of updates available. One exception is the Google Pixel, which includes support similar to iPhones. This helps it retain value similar to Apple resale value.
6. Depreciation
When it comes to actual numbers and depreciation, Apple iPhone resale value is the clear winner in the first few years. In the first year, Apple phone value decreases by about 16.7%, while Android loses about 33.6% of its value. In year two, Apple phone value goes down about 35.5%, and Android decreases by about 62.5%.
When you get to four years, the differences between Apple phone value and Android are closer. By this time, Apple phone value has dropped by 66.4% and Android phone value has dropped by about 81.1%.
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