Even the Same 1 Million Won Item Differs Greatly After 2 Years... Galaxy S Used Price Half of iPhone's

iPhone 14 Pro Max 75.1%, Galaxy S22 Ultra 46%.
Last year's model residual value shows iPhone far ahead
The price gap in used devices grows each year
"Difference in user loyalty"

Luxury goods generally refer to products that have been used by people for a long time and have gained brand value. Among mobile phones, Samsung Electronics' Galaxy and Apple's iPhone are considered products qualified as luxury goods. Samsung Electronics and Apple virtually divide the global smartphone market and fiercely compete in almost every area, including price, performance, market share, and brand awareness. However, there is one area where Galaxy clearly falls behind: residual value over time, that is, the resale price. To be called a luxury product, it must not be shaken by time. However, the residual value rate of Galaxy 2 to 3 years after release was only half that of the iPhone.

On the 7th, the day Apple’s new iPhone 14 series was officially released in Korea, citizens lined up at the Apple Store in Myeongdong, Jung-gu, Seoul to purchase the products. Photo by Mun Honam munonam@

Asia Economy analyzed the prices of flagship smartphones from Samsung Electronics and Apple listed on 'Cetizen,' a specialized site for trading used mobile devices, and found that the residual value of the iPhone series was significantly higher than that of the Galaxy series.

First, comparing flagship models released last year, Apple's top model iPhone 14 Pro Max (128GB) had a launch price of 1.75 million KRW, but as of the 13th, the current used transaction price is 1,314,000 KRW. The residual value, i.e., the used price relative to the launch price, is 75.1%, the highest among all Samsung and Apple smartphones released last year.

Samsung Electronics' top model comparable to the iPhone 14 Pro Max is the Galaxy S22 Ultra (256GB). This model, which had a launch price of 1,452,000 KRW, can currently be purchased used for 668,000 KRW. The residual value is 46%, less than half of the launch price. Compared to the iPhone 14 Pro Max, there is about a 30 percentage point difference.

Even when comparing the next-tier models, the residual value of the iPhone leads. The iPhone 14 Pro, with a launch price of 1.55 million KRW, is currently traded at 1,035,000 KRW used. The residual value is 66.8%. The Galaxy S22 Plus, the next-tier model of Galaxy with a launch price of 1,199,000 KRW, has a used price of 544,000 KRW, recording a residual value of 45.4%.

Comparing models released the year before last, the gap between the two companies widens further. The residual values of the iPhone 13 Pro Max, iPhone 13 Pro, and iPhone 13, released in 2021, are 69.1%, 62.1%, and 61.2%, respectively, forming around the 60% range. Meanwhile, the Galaxy S21 Ultra, Galaxy S21 Plus, and Galaxy S21, released the same year, remain in the 30% to 40% range at 40.2%, 36.1%, and 37%, respectively. The price difference is nearly double when based on the top models (iPhone 13 Pro Max at 1.03 million KRW vs. Galaxy S21 Ultra at 583,000 KRW).

Among models released within the last three years, the product with the lowest residual value is identified as the Galaxy Z Flip3. This product, with a launch price of 1,254,000 KRW, can currently be purchased for 358,000 KRW. The residual value is only 28.5%.

On the 26th, domestic and international press and overseas influencers attending 'Galaxy Unpacked 2023' held at COEX in Gangnam-gu, Seoul, are experiencing the Galaxy Z Flip5, Galaxy Z Fold5, Galaxy Watch6, Galaxy Tab S9, and more. Photo by Jin-Hyung Kang aymsdream@

Of course, even though they were released in the same year, Samsung Electronics launched in February and Apple in October, an 8-month gap. In other words, Samsung's product came out 8 months earlier, making it, in a sense, an older model. However, seeing that Samsung's 2022 models have lower residual values than Apple's 2021 models clearly shows that Apple holds an advantage in the used phone market.

The industry analyzes that the reason for the high residual value of the iPhone series is due to users' high loyalty. A used phone company official said, "The iPhone supports iOS updates continuously, allowing long-term use, and above all, Apple’s unique ecosystem connecting smartphones, MacBooks, and Apple Watches makes it difficult for users to switch brands once they start using it."

In this context, voices are emerging that Samsung Electronics should also consider strategies to maintain high residual value. A telecommunications industry official said, "The residual value of used smartphones means more than just the price customers resell after 1-2 years. The higher the value, the easier it is to design various products, and it also helps with new smartphone sales," adding, "Now is the time to consider strategies to maintain residual value as highly as the Galaxy brand value."