Why Your Phone Loses Value Within the First 90 Days

By Tiegan Johal | Updated 12 Jan 2026

Why Your Phone Loses Value Within the First 90 Days

Why Your Phone Loses Value Within the First 90 Days

Many people are surprised by how quickly a brand new phone starts to lose value. You take it out of the box, enjoy that fresh feeling, and within weeks it is already worth noticeably less than what you paid. This drop is most dramatic in the first ninety days, and it happens to almost every modern smartphone.

Understanding why this happens can help you make better decisions about when to sell, when to buy, and whether refurbished tech might be the smarter option.

The Moment a Phone Becomes Used

The biggest drop in value happens the moment a phone stops being brand new. As soon as it is activated, it moves into the used market, even if it looks perfect.

Buyers are willing to pay a premium for unopened devices with full warranties and zero usage history. Once that seal is broken, the phone enters a different pricing category.

Phone Status Perceived Value Buyer Confidence
Brand new and unopened Highest Very high
Used under 30 days Lower High
Used 90 days Moderate Medium

This shift alone accounts for a large part of the early value loss.

Early Supply Floods the Market

Within the first few weeks of a phone launch, many devices enter the resale market. Some users upgrade quickly, some return devices, and others trade in early as part of contract changes.

When supply increases rapidly, prices adjust. Even if demand is strong, more available devices naturally push values down.

This effect is especially noticeable with popular models where thousands of identical devices appear on the market at the same time.

New Announcements Affect Perception

Even rumours of upcoming models can influence resale value. Buyers know that new features, camera upgrades or design changes are coming, which makes current models feel less future proof.

This does not mean the phone is suddenly worse. It simply means buyers are less willing to pay top prices when something newer is on the horizon.

Retail Pricing Anchors Resale Value

Retailers often introduce small promotions or bundled offers within the first few months. These may include trade in bonuses, network incentives or discounted accessories.

Once official prices soften, resale prices follow. The second hand market is heavily influenced by what buyers can get new or nearly new elsewhere.

Condition and Battery Health Begin to Matter

Within the first ninety days, small signs of use start to appear. Minor marks, reduced battery health and general wear all begin to influence value.

Even careful owners experience natural battery degradation from day one. While this is normal, it still affects resale pricing.

Factor Impact on Value
Battery health Medium
Cosmetic wear Low to medium
Storage capacity Medium to high

Why the First 90 Days Matter Most

After the initial drop, depreciation usually slows. Values continue to decline over time, but the steepest curve is almost always at the beginning.

This is why timing matters so much when selling. Waiting too long can mean missing the strongest resale window.

Why Selling Early Can Make Sense

If you know you are likely to upgrade within a year, selling sooner rather than later often results in a better return.

Many customers choose to sell your iPhone through Envirofone while demand is still strong and prices reflect early market interest.

The same applies to other devices, including Samsung phones and wearables, where early trade in values are often the most competitive.

How This Affects Buying Decisions

Understanding early depreciation also changes how people buy phones. Paying full price for a brand new device means absorbing the steepest value drop yourself.

This is why many buyers now choose refurbished devices instead. Refurbished phones have already passed through the steepest part of the depreciation curve.

By browsing refurbished phones and devices on Envirofone, customers can access high quality tech at a lower entry price, with much slower ongoing value loss.

Refurbished Tech and Total Cost of Ownership

When you combine lower purchase prices with slower depreciation, refurbished devices often offer a far lower total cost of ownership.

They are professionally checked, securely wiped and clearly graded, giving confidence without paying the early adopter premium.

Turning Depreciation Into Opportunity

Phone depreciation is unavoidable, but it does not have to work against you. Selling at the right time and buying smarter can turn depreciation into an advantage.

Envirofone helps customers on both sides of that decision. Whether you are looking to sell a device while it still holds value, or buy refurbished to avoid early losses, the platform is designed to make both options simple and transparent.

Understanding why phones lose value within the first ninety days gives you control. With the right timing and the right choices, you can keep more value in your pocket and reduce unnecessary waste at the same time.