Narrator: This iPhone 7came out three years ago.
I could sell it and still get a couplehundred dollars for it.
But if it was an Android phone, it would be a very different story.
Why can I get so much forthis 3-year-old phone? Right now on eBay a usediPhone 7 goes for around $150 to sometimes over $200.
But a Galaxy S7, whichalso came out in 2016, sells for under $100.
This is true for sites likeBest Buy and Swappa, too.
It doesn't matter where you shop, used iPhones always cost more than the same generation of Android phone.
And you have to pay even more if you want a certified refurbished phone.
Buying a refurbishediPhone 7 Plus from Apple still costs $480.
Unfortunately, all phones lose value as soon as you take them out of the box.
Even a used iPhone XS, which came out last year, sells for around $700 to $800 on eBay.
That's 20% to 30% lessthan the original price.
But reports have shown that after a year, iPhones retain around 15% more value than Samsung phones.
And it's even worse for otherAndroid phone manufacturers, like LG.
The LG G8 ThinQ came out in March.
It costs around $850 new, but used itsells for just $300 to $400.
That's more than a 50% loss in just three months.
So why do we consider oldphones to be worth so much less? For better or worse, thesmartphone upgrade cycle is quick.
Every year you knowthere will be new phones with new features.
Tim Cook: This is iPhone X.
Narrator: A big reasonfor buying that new phone is because your current phone is slow or out of date.
But this is where Applehas a big advantage.
Since Apple is in completecontrol of the iPhone, they can choose to support products for a longer period of time.
And they're more transparent about how long a phone will be supported.
That means your old phonecan get the newest features and security updates.
IOS 12 even supports the iPhone5s, which came out in 2013.
In fact, Apple reportsthat 85% of iPhone users have installed the latest software.
Android P, on the other hand.
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Cook: They only had 10% adoption.
Narrator: Data from 2018showed that the iPhone 6s and 7 are still very popular phones.
And Apple is bringing iOS13 to both of these phones.
That means the iPhone6s has been supported through five software versions.
That's not something anyAndroid phone can say.
And thanks to these updates, older iPhones remain more popular and can be sold for more money.
Companies like Samsung and LG are slow to bring new versions ofAndroid to their devices.
It takes time to modifyAndroid for each phone, and companies might not be motivated to bring new versions to phonesthat are several years old.
And it can be tough to tell how long your device is supported, although the speed of Android updates has gotten better overthe last couple of years.
Of course, iPhones also havethe best brand recognition.
People are willing totrust a used iPhone 7 more than a OnePlus 6 because they know whatthey get with an iPhone.
And unless you're the type of person who watches a review ofevery new Android phone, it can be tough to keepup with each release.
New iPhones, on the other hand, are released every September.
But there are some things thatAndroid phone manufacturers can do to improve theirphones' resale values.
Getting new versions of Androidfaster is a huge advantage.
If you buy Google's own Pixel phones, you know you'll get Google'ssoftware updates right away.
So you might be more likelyto stick with that device.
And phones that don't modifystock Android very much usually perform better in the long run.
OnePlus phones, for example, don't pack on a lot of extrafeatures on top of Android.
As a result, they still run great years after they're released.
But one thing does remaintrue, iPhone or Android: Try to sell your phone beforethey release a new model.
Phones drop in value almost immediately after a new one is announced.
So when that shiny newiPhone gets released, consider buying used instead of new.
You can save a lot of money by buying last year's latest and greatest.
And now that thousand-dollarphones are the norm, buy a phone that you can use for more than just a year or two.
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