Residual Value and the Smartphone Circular Market | CCS Insight

CCS Insight examines one of the most important economic forces shaping the secondary smartphone market, residual value. In the ITC Malta Delegates Directory, Chief Analyst Ben Wood explores why resale value remains central to sustaining margins in the circular device economy, and how Apple’s ecosystem and Android manufacturers’ evolving strategies are influencing supply, pricing, and long term market dynamics for traders.

Key takeaways

• Residual value remains the financial foundation of the second hand smartphone industry
• Apple devices retain value significantly better than most Android competitors
• Extended software support is becoming a key tool to improve Android resale value
• Upgrade programmes and certification schemes may reshape the circular market

The strength of Apple’s ecosystem has long supported higher residual values for iPhones, making them the backbone of the global second hand smartphone trade. Strong brand loyalty, consistent demand, and long software support cycles help devices retain value and reduce purchasing risk for consumers upgrading to newer models.

According to CCS Insight research featured in the directory, an iPhone typically retains more than 40% of its original value after one year, while Samsung devices average just over 20%, with other Android brands depreciating even faster. These differences continue to influence sourcing strategies for traders and the overall balance of supply in the circular device market.

“Residual value is where the margin is made to sustain the second hand smartphone industry.” Ben Wood, Chief Analyst, CCS Insight

Android manufacturers are increasingly responding to this gap. Extended software support, trade in guarantees, and structured upgrade programmes such as Samsung’s Galaxy Club initiative are designed to strengthen device resale values and ensure a steady supply of younger devices entering the secondary market.

If these efforts succeed, they could broaden the circular ecosystem beyond Apple dominated supply. A stronger resale profile for Android devices would improve inventory diversity for traders and increase confidence across the secondary market.

What it means for traders

• Monitor residual value trends when sourcing inventory across brands
• Expect more structured trade in and upgrade programmes from Android manufacturers
• Certified refurbished programmes may increase resale values and buyer confidence
• Diversifying supply beyond Apple devices may become easier as Android residual values improve

Read the full feature (PDF)

Originally published in the ITC Delegates Directory (June 2025).

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