The Harsh Truth: $2,000 Phones Age Faster Than Your Wallet
Premium flagship smartphones are high-priced devices whose resale value typically falls sharply within the first 12 months, with ultra-premium and foldable models suffering steeper depreciation rates than traditional slab phones despite their advanced hardware and eye-catching designs. A new study on smartphone depreciation rates suggests that a hypothetical USD 2,000 (approx. RM9,200) Apple iPhone Ultra or iPhone Fold could lose USD 1,292 (approx. RM5,940) of its value in just one year, leaving it worth around USD 708 (approx. RM3,250). That is not a minor haircut; it is more than half the phone’s launch price gone before the second year’s software updates even arrive. If you are still buying ultra-premium phones thinking you are parking money in a safe asset, you are misunderstanding how fast this segment moves and how unforgiving the resale market has become.
Foldables Hurt Most: Novelty Comes With a 65% Price Crash
Foldable phone value loss is brutal. The SellCell data shows foldable smartphones lose an average of 64.6% of their value—about USD 997.69 (approx. RM4,590)—within 12 months, while traditional flagships lose 55.3%, or USD 605.32 (approx. RM2,785), in the same period. In plain terms, a foldable retains only 35.4% of its launch price after a year, compared with 44.7% for a regular flagship. The worst case in the study, the Samsung Galaxy Z Fold6 1TB, dropped USD 1,479.99 (approx. RM6,800) in a single year. Buyers are paying for bleeding-edge design—complex hinges, layered OLED panels, new adhesives that try to hide creases—but the market treats these phones as experimental hardware. First-generation foldables especially see resale value evaporate once the next version arrives, because the novelty premium disappears instantly while reliability concerns still linger. If you buy a foldable, you must be comfortable with owning a fast-depreciating gadget, not a collectible.
Why Ultra-Premium Phones Lose Value So Quickly
The projected iPhone Ultra and iPhone Fold highlight why smartphone depreciation rates are so harsh at the top end. A hypothetical USD 2,000 (approx. RM9,200) foldable iPhone, priced as a luxury showcase device, could shed USD 1,292 (approx. RM5,940) in value in the first year if it follows current foldable trends. That would leave a residual value of around USD 708 (approx. RM3,250). The problem is that ultra-premium phones behave like novelty products: the moment a successor with slightly better specs appears, the old model’s prestige collapses. Foldables add another layer of risk. They are expected to be more fragile, and any physical damage—especially to delicate display layers and intricate hinges—is likely to trigger even more aggressive value loss. The iPhone Fold is already in production, but even its launch depends on Apple solving hinge design issues. A cutting-edge device that is both expensive and unproven will always suffer when buyers compare it to safer, cheaper alternatives a year later.
Apple Still Wins on Resale—But Pain Is Inevitable
Brand matters when you look at flagship phone resale value. The study notes that nine of the ten best-performing devices for value retention were iPhones. The iPhone 16 lineup retained 51.5% of its value after 12 months, the strongest showing among major brands. OnePlus came next at 46.8%, followed by Google at 40.8%, Samsung at 39.5%, and Motorola at 24.5%. In other words, iPhone depreciation is still milder than what most competitors face. This track record matters when projecting the iPhone Fold’s future. The headline USD 1,292 (approx. RM5,940) loss assumes it depreciates like Android foldables. If Apple can match its iPhone 16 performance, the first-year hit could shrink to about USD 970 (approx. RM4,465), which is still a painful amount but more tolerable. However, Apple rarely discounts hardware meaningfully, so waiting for a bargain is wishful thinking. The market will punish any buyer who mistakes “strong Apple resale” for immunity from foldable phone value loss.
What This Means for Buyers: Treat Flagships Like Luxury, Not Assets
The data sends a clear message: buying an ultra-premium or foldable iPhone should be done for want, not for resale math. As one summary put it, “The data suggests the iPhone Fold is a device to buy because you want it, not because you expect to recoup the cost”. If a USD 2,000 (approx. RM9,200) phone can shed well over half its value in a year, you should treat that purchase like a high-end fashion item or sports car—an indulgence whose financial return is negative by design. That does not mean you should avoid these phones entirely. It means you should stop pretending they are rational investments. At the end of the day, much depends on how durable Apple’s first foldable construction proves to be, from liquid metal hinge to titanium frame. But even if Apple nails the engineering, depreciation will still be fierce. Buy the flagship you love, keep it for more than one upgrade cycle, and accept that the resale market will not reward you for chasing the most expensive phone in the room.
