Competition among phone makers is heating up over the refurbished phone (used phone) market, with Samsung Electronics, which is leaning on artificial intelligence (AI), poised to challenge Apple's No. 1 position. Until now, Apple's iPhone had a lower depreciation rate than rivals and was treated as a "high-value used phone." But as Samsung's Galaxy S outpaces the iPhone in AI innovation, signs of a seismic shift are appearing in the refurbished phone market.
◇ The old saying "you can resell it for what you paid" is outdated… depreciation rises for used iPhones
A refurbished phone refers to a handset that was displayed in a store or returned due to a defect, then repaired and sold to consumers at a lower price than a new device. Refurbished phones are known to be about 20% to 50% cheaper than the regular price.
The most important factor in the refurbished phone market is the "depreciation rate." Depreciation rate means the rate at which a product's value declines over time. The higher the depreciation rate, the more easily the product's value falls. That is why products with lower depreciation are more popular in the refurbished phone market.
According to recent data released by the global used phone transaction platform SellCell, the iPhone 16's depreciation rate five months after launch was 35.4%. That is more than 10 percentage points (P) higher than the iPhone 13's depreciation rate (24.7%) over the same period.
By contrast, the Galaxy S's depreciation rate is falling. SellCell said the Galaxy S25's depreciation rate five months after launch was 46.6%, down 5.3 percentage points (P) from the Galaxy S22's 51.9%. SellCell said, "There has been a strong perception that Samsung Electronics products lose value sharply right after launch, but recently they have been gradually regaining trust in the used phone market."
Both Apple and Samsung Electronics are securing customers through official refurbished phone certification programs. As smartphone prices rise and replacement cycles lengthen, the new phone market is shrinking, but the refurbished phone market—where buyers can purchase at lower prices—is growing. According to market research firm Statista, the global refurbished phone market is expected to grow from 50.5 billion dollars (about 71.7554 trillion won) in 2022 to 172.0 billion dollars (about 244.3948 trillion won) by 2033.
When a manufacturer directly runs a refurbished phone business, it can control used phone quality. For refurbished phones not certified by the manufacturer, the repair process may lack transparency and degrade quality, which can hurt brand reputation. Apple provides genuine parts replacements and a one-year free warranty for refurbished phones. Samsung Electronics sells refurbished phones mainly in select countries, including Korea, the United States, the United Kingdom and France. It installs Samsung Electronics genuine parts in normal products, early defective units, display devices and used devices, and sells them at prices lower than the regular price. The warranty period is the same as a new product: two years.
◇ iPhone's used value declines… can Apple keep the "refurbished phone" crown?
Apple currently leads the global refurbished phone market. According to market research firm Counterpoint Research, Apple's refurbished phone sales in the first half of this year rose 7% from a year earlier. It strengthened its global share by growing 12% in emerging markets alone. Samsung Electronics saw its share grow 4% in advanced markets.
However, as Apple is seen as passive on AI innovation, depreciation rates for used iPhones are rising. In September, Apple unveiled the iPhone 17 series and iPhone Air, but said little about its AI, "Apple Intelligence." Notably, there was no mention at all of "personalized Siri," cited as Apple's next-generation AI technology. The recently updated Apple Intelligence offers features such as writing, summarization, generative AI images, live translation, visual search and Genmoji—functions largely similar to those Samsung disclosed earlier this year with the Galaxy S25 series.
Among users, there is even talk that the iPhone has degenerated into an "old man's phone." On an online community for Apple product users, a post read, "These days if you use an iPhone you're an 'ajeossi,' and if you switch to Galaxy you're called young." User reactions included, "It seems the AI features made it fall out of favor," and "Still, once you try it, the iPhone's user experience is the best."
SellCell said, "The AI innovation Apple has emphasized has not yet had a tangible effect in defending used phone value," adding, "If this trend continues, Samsung Electronics could significantly narrow the refurbished phone value gap with Apple around mid-2026."