Foldable Phones Are Losing Value Fast: Why the Future of Smartphones Faces a Resale Challenge

Despite advanced technology and premium designs, foldable smartphones from Samsung, Google and other major brands are experiencing a sharp decline in resale value, raising questions about consumer confidence and the long-term future of this emerging market.

The smartphone industry has entered a new phase of innovation, with foldable devices moving from experimental concepts to a competitive product category. Companies such as Samsung, Google, Huawei and Oppo are investing heavily in flexible displays and new form factors, hoping to make foldable phones a mainstream alternative to traditional smartphones.

However, a recent report from British electronics resale and recycling company Compare and Recycle highlights a major challenge facing this growing segment: foldable smartphones are losing their value significantly faster than conventional devices.

According to the report, several Samsung and Google foldable models rank among the smartphones with the fastest depreciation rates. Some devices lose at least 57% of their original launch price within just one year, while the average loss in the second-hand market can reach around 70%. This rapid decline raises concerns about whether expensive foldable phones can maintain their financial value despite their advanced technology and premium positioning.

High launch prices, but rapid depreciation

Foldable smartphones remain among the most expensive devices available on the market. Many models launch with prices exceeding $1,000, reflecting the complexity of their engineering, including flexible OLED displays, advanced hinge systems and specially developed materials designed to withstand repeated folding.

Manufacturers argue that these technologies justify the premium pricing. Samsung, for example, has invested years in improving the durability of its Galaxy Z Fold and Galaxy Z Flip series, developing stronger hinges and protective layers for flexible screens.

However, a high initial price does not automatically translate into strong resale value. According to market analysts, buyers of used foldable phones often hesitate because of concerns about long-term reliability, possible screen damage and expensive repairs.

This situation differs from some traditional premium smartphones, particularly Apple’s iPhone lineup, which has historically maintained stronger resale values due to high consumer demand, long software support cycles and confidence in the company’s ecosystem.

Durability concerns remain a key factor

One of the biggest reasons behind the depreciation of foldable phones is uncertainty surrounding durability. Although the technology has improved considerably since the launch of the first commercial models, flexible screens and folding mechanisms remain more complex than traditional smartphone designs.

Samsung’s Galaxy Z Fold and Galaxy Z Flip devices use multi-layer flexible displays and sophisticated hinge systems engineered to survive thousands of opening and closing cycles. The company has repeatedly emphasized that its latest models undergo extensive durability testing before reaching consumers.

Yet, second-hand buyers face a major uncertainty: they often cannot know how the previous owner treated the device. A foldable phone may have been exposed to drops, pressure, dust or intensive daily use, potentially affecting the lifespan of its most sensitive components.

Google’s Pixel Fold series faces similar challenges. While Google has entered the foldable market with ambitious devices, Samsung still dominates the category, meaning competitors must spend more time building consumer trust.

Rapid innovation is putting pressure on older models

Another factor accelerating price drops is the speed of technological development. In the smartphone industry, the launch of a new generation every year naturally reduces the value of previous models. However, the impact is even stronger in emerging categories where consumers expect major improvements with each new release.

Many buyers prefer waiting for newer versions because they anticipate better designs, stronger hinges, improved battery life and more durable screens.

Competition from Chinese manufacturers, including Huawei, Oppo and Xiaomi, has also increased pressure on the market. These companies are introducing new foldable designs at a rapid pace, forcing existing models to lose relevance faster.

As innovation accelerates, yesterday’s flagship can quickly become tomorrow’s discounted device.

Repair costs affect consumer decisions

Repair expenses represent another important factor influencing resale prices. Foldable smartphones contain more complex components than traditional phones, particularly their internal displays and hinge mechanisms.

Replacing a damaged flexible screen can be significantly more expensive than repairing a conventional smartphone display. This financial risk discourages some buyers from purchasing used foldable devices, fearing unexpected repair bills in the future.

As demand decreases, owners often have to lower their asking prices to attract potential buyers, further accelerating depreciation.

Does this mean foldable phones are failing?

Despite the significant loss in value, the current situation does not necessarily indicate that foldable smartphones have failed. Many groundbreaking technologies experienced similar challenges during their early years, when production costs were high and consumer adoption remained limited.

Manufacturers believe that improvements in durability, lower production costs and stronger competition will eventually help stabilize prices and increase consumer acceptance.

Foldable phones also offer unique advantages that traditional smartphones cannot easily replicate. They allow users to carry a large screen in a compact device and combine smartphone portability with tablet-like functionality.

For many consumers, the appeal remains clear: a foldable device offers a new way to interact with digital content, work, watch videos and multitask.

The future depends on consumer confidence

The depreciation figures revealed by Compare and Recycle highlight a real economic challenge for the foldable smartphone industry. However, they also reflect a transitional period for a technology that is still evolving.

Consumers do not evaluate smartphones only by their specifications or launch price. They also consider reliability, repair costs and how much value the device will retain after years of use.

For foldable phones to move from luxury products to mainstream devices, manufacturers will need to focus not only on innovation but also on durability, affordable repairs and longer product lifespans.

The current decline in resale value shows that foldable smartphones still carry financial risks for buyers. But as technology improves and adoption grows, the market could gradually change.

In the coming years, foldable devices may become a normal part of the smartphone landscape rather than an expensive experiment reserved for early adopters. The success of this category will ultimately depend not only on creating impressive technology, but on convincing consumers that their investment can stand the test of time.