Research suggests bad news for owners of the S22 that plan to upgrade in the near future. And Apple is starting to face crippling supply chain issues due to widespread lockdowns in China.
S22 is losing value at an alarming rate
According to data from research firm SellCell, Samsungs latest flagship device, the Galaxy S22 is depreciating in value 3x faster than the iPhone 13. The data is based on the value two months post-launch. It’s worth noting the launch time frame for these devices with the iPhone 13 launching in September 2021 and the Galaxy S22 launching in February 2022. Here are a few callouts from the data:
- 128GB S22+ 5G dropped in value by 53.8% two months post-launch
- 128GB Pixel 6 Pro lost 44.2% of its value after two months
- 128GB iPhone 13 mini fell in value by 29.2% by November 2021
- 128GB S22 Ultra 5G lost 41.7% two months from launch
- 128GB Pixel 4 lost 33.1% of its value after 8 weeks
- 128GB iPhone 13 Pro Max lost just 3.8% value by the end of 2021
As a whole
- The S22 range lost almost half its value at 46.8%
- The Pixel 6 range lost over 41% of its value
- The iPhone 13 Series lost just 16.8% in the same time frame
The AppleTLDR take
The research reinforces what most of us already know. The iPhone holds its value while Android devices…well not so much. There are many reasons why this is the case.
- Each Android phone is just another device in a sea of seemingly endless Android phones
- They just aren’t as desirable. Most Android phones aren’t flagship devices, they’re cheaper, often much cheaper with little value to hold
- Of the flagships available, they don’t sell at close to the volumes that the iPhone sells at representing lower overall demand
- A lack of long term software support in many cases (though this is improving)
- Inconsistent build quality and longevity amongst different Android phones
Macs face major shipping delays
It seems that even Apple can’t defy gravity forever. One of Apple’s key suppliers, Quanta, is facing major disruption due to local lockdowns. Though the lockdowns have started to ease, production is having difficulty ramping up to normal levels. As reported by DigiTimes, Quanta is currently operating at about 30% capacity.
Quanta is the sole assembler of Apple’s 14- and 16-inch MacBook Pros and the machines are primarily made at the ODM’s Shanghai plant. Quanta vice chairman CC Leung on April 30 pointed out that the company’s Shanghai plant has restored around 30% of its capacity and is eyeing to raise the percentage to 50% gradually.Digitimes
For its part Apple is doing all it can to ease the problems, going as far as to switch transportation for finished goods from maritime to air. Apple also owns private runways for shipping service parts. It’s possible that it may be taking advantage of these so as to reduce reliance on commercial ports.
It isn’t clear if all of Apple’s final assembly partners are experiencing the same production delays. But what is clear is that Apple expects that to be the case and has built-in a $4-8 Billion headwind into its forecast for Q3.
Features Image: Taan Huyn via Unsplash