A smartphone depreciates in value by 15% per year. If purchased for $1,200, what will its value be after 3 years?

Fri, 01 May 2026 03:31:02 +0000

Understanding Smartphone Depreciation: How a $1,200 Phone Loses Value by 15% Annually When you buy a smartphone today, understanding its depreciation can help you make smarter financial and purchasing decisions—especially if resale value matters. One common trend is that smartphones lose value steadily over time, typically depreciating by 15% per year. But how does that actually work in real terms? ### What Does 15% Annual Depreciation Mean? A 15% annual depreciation means that each year, your smartphone’s resale value drops by 15% based on projected market conditions, usage, and technology obsolescence. Unlike cars, which may lose value quickly in the first few years, smartphones depreciate predictably but steadily over time—often following a geometric decline rather than a linear drop.