The real cost of a new iPhone

• A £799 iPhone bought new 5 years ago is worth around £150 today – shares in Apple would be worth £2,100 

• New analysis from eToro shows how quickly consumer goods like iPhones, apparel and even ‘viral’ products like air-fryers shed their value while the brands’ shares post double-digit gains 

• While many Britons chase the buzz of viral buying, only 26% of UK adults own any shares at all

With the iPhone 17 launching tomorrow, millions of Brits are preparing to part with £900 or more for Apple’s latest model. Yet new research from eToro, the trading and investing platform, reveals the hidden cost of constantly upgrading.

eToro’s analysis looked at the five-year resale value of popular products versus the five-year performance of the companies’ shares. An iPhone 12 bought in 2020 for £799 is now worth just £150, a staggering 81% loss in value. If the same £799 had been invested in Apple stock, these shares could potentially be worth over £2,100 today.

“These are purchases many of us justify as ‘investments’ in our lifestyle, but they rarely hold their value. By contrast the underlying shares have, more often than not, been real investments in the classical sense, with brand stocks proving a valuable future-proof asset to buy as well” said Dan Moczulski, Managing Director, eToro UK. “We’re not telling people to stop buying the things they love, but to recognise that even a small, regular allocation to a diversified investment portfolio could be a step toward long or short-term financial goals and put them on the same side as the companies that profit from our spending habits.”

But iPhones aren’t the only ‘big ticket’ or viral consumer purchases that see steep drops in value. A Nintendo Switch bought in 2020 has lost 70% of its value, yet Nintendo’s stock is up 14%. Over the same period, a Sony PlayStation 5 has fallen 36%, but Sony shares have risen 12%. Even a £90 Abercrombie hoodie, made famous by TikTok, now sells for about £40 second-hand while Abercrombie’s share price has jumped 33%.

^{Past performance is not a reliable indicator of future results. Data from Refinitiv.} 

FCA research shows that social-media hype is now a leading trigger for headline purchases: in its latest poll of investors aged 18-40, more than three-quarters (76%) said they would buy almost any everyday product on hype alone. In the last year, it found 42% had bought an air-fryer – a social media favourite – with smart-watches next at 32%. That impulse is proving costly, with many of those items shedding 40–60% of their value in a single year, even as the companies behind them continue to deliver long-term gains.

Dr Heloïse Greeff, an Elite Pro Popular Investor on eToro, has put in place habits to avoid this temptation and to stay disciplined: “I’m still using a five-year-old iPhone with a replacement battery, because every time I’m tempted to upgrade, I play a little game with myself: ‘repair it, invest the difference’. 

“Over the last decade, I’ve forgotten about most of the gadgets or clothes I nearly bought, but I haven’t forgotten the compound returns from investing that spare cash. This isn’t about never treating yourself; it’s about having an honest conversation with yourself, what’s a true need, what’s a fleeting want, and how can you let some of that value work for you in the market instead? A small, regular top-up to a diversified portfolio can turn everyday temptation into long-term wealth.” 

• As part of this study, eToro looked at flagship products retail priced between £160 and £53,000, gathering actual ‘sold’ prices from UK eBay, CeX and leading trade-in sites, in order to determine how much they depreciate 5 years after purchase. The prices were then stacked against the brands’ share-price performance (total return) from 2020-2024 and year-to-date 2025.
• Depreciation figures compare UK recommended retail price (RRP) at launch with the median cash price offered for a unit in “good” condition. Share-price performance uses total-return indices where available. Past performance is not an indication of future results; capital is at risk.