The Common Mistake Most People Make
The most value you can get out of an iPhone is not to use it as long as you can. According to calculations, the optimal holding period for an iPhone is 3 years.
Many people think buying the newest phone and using it as long as possible, probably 5 years and above, will justify the cost. The logic is: higher upfront cost but lasts longer, which makes the phone “worth” the value.
However, according to calculations, you are not actually saving more and are also compromising on the quality of phone you can get.
Understanding iPhone Depreciation (Singapore Prices)
Since the author is based in Singapore, actual iPhone prices in Singapore form the foundation of these calculations.
Here’s what happens when you buy a new phone:
- When you buy a new phone from the shop, even before opening the box seal, the resale price would have dropped by $200
- Once you open the box, the price drops by another $300 and is officially classified as second-hand
- By the time it passes the first year, the value of the iPhone would have depreciated by 46%
The Math: Why “Using It Forever” Doesn’t Save You Money
You might think, “Well, it doesn’t matter because the iPhone is durable and using it long enough would justify the cost.” Wrong again.
The price of an iPhone Pro Max during launch, whether it’s iPhone 11 Pro Max or iPhone 17 Pro Max is always around Singapore dollar (SGD) $1900 for 256GB.
Annual Cost for Using iPhone 17 Pro Max 256GB Without Selling
Assuming you use the new iPhone for 6 years without selling it in the end, the average cost of using iPhone 17 Pro Max per year is SGD $1900/6 = $317 per year.
How to Own an iPhone for Half the Price
If you remember that the first year depreciation is the highest at around 46%, and if you can avoid that, you can literally half the price of your iPhone purchase while still enjoying the latest technology.
In the world of iPhone, a one year difference in phone technology is very little, so always aim for the second latest version second-hand iPhone.
For example, if the newest iPhone is iPhone 17 Pro Max, then buy a second-hand iPhone 16 Pro Max.
Cost of Using iPhone 16 Pro Max 256GB If You Sell After 5 Years
The current price of a second-hand iPhone 16 Pro Max is around SGD $1168 in the early year of 2026. An iPhone 11 Pro Max 256GB costs SGD $348 as of writing.
Since you buy a phone that is already one year in the market and sell it 5 years later, your cost of using the phone would be SGD ($1168 – $348) = $820.
So the average cost for using an iPhone 16 Pro Max 256GB for 5 years is SGD $820/5 = $164 per year.
Cost of Using a new iPhone 17 Pro Max 256GB If You Sell After 5 Years
If you use a new iPhone 17 Pro Max and sell it after 5 years, the average cost per year would be ($1900 – $348)/5 = $310.
The cost of using the iPhone immediately sky rockets to double the cost if you use a new one.
Why You Should Always Buy a Second-Hand iPhone
iPhone has always been famous for the quality of its hardware and software. However, that being said, it does not mean that it is free from any manufacturing defects.
Chances are, after being used for at least a year, whatever manufacturing defects or software incompatibility would have already surfaced within that period.
If problems don’t surface within the first year, chances are it shouldn’t have any problems moving forward. This is why the iPhone is able to retain its value even for older versions.
My Personal Strategy: Maximizing Cost vs. Latest Technology
The way I manage is to buy a one year-old second-hand model and change the phone after 3 years.
By the time I sell the iPhone after 3 years, the iPhone will be in the market for 4 years already.
When I sell my iPhone 16 Pro Max 256GB 3 years later, it will be around SGD $758.
The actual cost of using iPhone 16 Pro Max 256GB for 3 years: SGD ($1168 – $758) = SGD $410.
The cost per year would be $410/3 = SGD $137.
What About Changing Every 2 Years?
Regardless of whether you hold the phone for 2 years or 3 years, the price is not too different.
If you hold for only 2 years, use the second-hand price for iPhone 15 Pro Max 256GB as a reference. The current price of iPhone 15 Pro Max is SGD $908.
Even if you change a phone every 2 years, using the price of iPhone 16 Pro Max: SGD (1168 – 908) = $260.
The cost of using the phone per year is SGD $260/2 = $130.
Again, the cost difference is not too big even if you change every 2 years. As long as you skip the premium price you pay for getting a new set of latest iPhone Pro Max model.
This is actually the same for other iPhone models also.
Why Holding the iPhone for Years Doesn’t Save You As Much Cost As You Think
For every year that you delay buying a second-hand iPhone, you are right that the iPhone price will drop for every new model release.
However, the price you get from selling your second-hand iPhone drops as well.
As long as you buy a second-hand iPhone that is at least one year old, it makes no difference how many years you keep it because the phone depreciation doesn’t change much after that.
The rate of depreciation of the iPhone is quite linear over the years.
My personal valuation of owning an iPhone Pro Max is SGD $150 per year.
As long as the price I pay for getting a Pro Max iphone after minus the selling price is less than SGD $150 per year, I am cool with it.
Please Do Not Use the Same Phone Forever
You would have seen people using the same phone for 6 or 7 years and brag that the phone is still going strong. Please do not do that.
Not only are they lying to themselves about the cost, they have to endure the feeling of using outdated technology.
The only thing that keeps them going is they have to brainwash themselves that the longer they use the phone, the more they save, which is not true.
Phones Exist to Capture Memories
Sometimes it is really about trying to re-live the happy moments, and good quality images make it better.
The biggest improvement in phones is mostly on the camera and video-taking capabilities. They allow you to capture memories in that moment with good quality using these features.
One day when you look back at these memories, it makes a hell of a lot of difference if you are able to capture them in good quality formats. A low quality video or picture kills the memory when you look back years later.
Conclusion
Do not fall into the trap of buying a new iPhone and justify the cost by using it forever. The math doesn’t work out that way. You are also sacrificing quality experiences by sticking to an old phone.
Instead of buying a new iPhone and using it for many years, you can consider buying a second-hand iPhone that is one generation older to skip the first year of owning it because the first year has the highest depreciation rate.
