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  ARM Give a man a fire and he's warm for a day, but set fire to him and he's warm for the rest of his life (Terry Pratchett, Jingo)

Recycling biz reckons AI features are destroying smartphone resale values

(2026/02/25)


Smartphone makers love touting AI, but the technology may be quietly destroying resale values.

According to UK used device website Compare and Recycle, Samsung's Galaxy S25 lost 63 percent of its resale value after 12 months, reversing a multi-year trend of Samsung flagships depreciating more slowly with each generation. The culprit, Compare and Recycle believes, is AI.

"The Galaxy S24 was the first Samsung model to have Galaxy AI features, said chief product officer Lee Elliott. S"ince then, Samsung has heavily marketed the on-device and cloud-based AI tools of the range, such as live translation, generative photo editing, and AI search."

[1]

He argues that positioning AI as a core selling point rather than background functionality has backfired badly.

[2]

[3]

Gartner research director Ranjit Atwal agrees the dynamic plays out differently across markets.

"Samsung's AI premium holds up with early adopters but fails in the refurbished market, where mid-range buyers prioritize value over AI branding," he told The Register .

[4]

"Beyond the price barrier, there is a secondary issue of trust: users are comfortable with AI for specific tasks like photo editing, but remain apprehensive about its more intrusive, wide-scale applications."

Not everyone is convinced AI is the problem.

CCS Insight's Ben Wood points out that heavy AI integration is now standard across premium devices. He says consumers can't really avoid it. A recent CCS Insight survey found 47 percent of buyers would actually pay more for a phone with AI features, though this applied to new purchases, not secondhand ones.

[5]Smartphones face a memory cost crunch – and buyers aren't in the mood

[6]Everyone wants a fancy phone – even the folk buying them second-hand

[7]Everyone needs an AI phone. No, don't hang up, it's true

[8]European consumers are mostly saying 'non' to trading in their old phones

"Although Samsung has doubled down on AI as a lead feature on its Galaxy devices, this is a common trend across Android smartphone makers, particularly in their premium devices. These days, it is hard for consumers to find premium devices that don't have a significant AI angle in the market and on-device experience," Wood told The Reg .

Samsung is now marketing its forthcoming S26 as an "AI phone" rather than a smartphone — a framing Elliott thinks is commercially risky as he suspects the public tide may have turned on AI.

[9]

"Research shows that just 42 percent of people in the UK are willing to trust AI. Contrarily, the vast majority of people are concerned about the negative outcomes of AI, and 80 percent believe regulation is required." ®

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[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aZ8qtuQwGnFUsOJROnh0CQAAAAs&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aZ8qtuQwGnFUsOJROnh0CQAAAAs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aZ8qtuQwGnFUsOJROnh0CQAAAAs&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aZ8qtuQwGnFUsOJROnh0CQAAAAs&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[5] https://www.theregister.com/2025/12/16/smartphones_memory_ai/

[6] https://www.theregister.com/2025/10/15/idc_counterpoint_smartphone_sales/

[7] https://www.theregister.com/2025/09/09/gartner_ai_phone/

[8] https://www.theregister.com/2025/06/18/used_phones_europe/

[9] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/aiml&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aZ8qtuQwGnFUsOJROnh0CQAAAAs&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[10] https://whitepapers.theregister.com/



"destroying smartphone resale values"

alain williams

Oh, good. It means that someone like me, who is not interested in AI features, will be able to buy good kit on the 2nd hand market.

Re: "destroying smartphone resale values"

lglethal

I think you've misunderstood the article. Or perhaps I have.

My reading is that the second hand market for phones with AI features has tanked. So you would be able to get a second hand phone with AI features cheap. I imagine although it's not mentioned in the article (unfortunately), that phones without AI are holding their value.

So for someone not interested in AI, your stuck with an expensive phone without or a cheap phone with...

Re: "destroying smartphone resale values"

Like a badger

As a personal observation, might also have something to do with the fact that Samsung have neglected some features on the core S models, in particular the cameras. If you're buying the various ProPlusXLUltra variants then this applies less, but an S25 (and even the expected S26) don't have much better cameras than the S22 from four years ago. I do have a proper camera, but I still put high value on a smartphone that's as capable photographically as reasonably possible. Samsung seem to think that their best interests are in cramming their phones with crapps that duplicate the usual Android/Google ones, rather than improving the hardware.

Re: "destroying smartphone resale values"

The Dogs Meevonks

My first android smartphone was a HTC way back around 2010... my previous smartphone to that was a Sony P990i that I made last 4yrs... It came with default apps for things like twitter, facebook and others... that could not be uninstalled... and then it came with the HTC variants of those exact same apps... that couldn't be uninstalled... none of them could be disabled either.

On a phone with very little storage and memory... it was a shitty move that made sure I never bought a HTC again.

If there's an AI feature and it can be disabled... I disable it... local based AI on the device such as adjusting pics to remove pylons or people for example are fine.

Re: "destroying smartphone resale values"

PCScreenOnly

For me the main driver of a new phone is the camera and that it has a microsd slot

Most camera's have not improved over the years. I only got the phone i have now is down to the S9 Edge and the green screen issue and not being able to trust it on a holiday

Re: "destroying smartphone resale values"

PCScreenOnly

Hopefully via ADB you can disable the crap AI

Used to do that to Bixby and so on

Re: "destroying smartphone resale values"

Charlie Clark

I suspect that the proper conclusion is that the market does not think "AI" makes a phone premium. I've had Samsung phones for the last 15-odd years and they've all been good. I even had a couple of the premiums – S5 and S10e. At the time, the S5 was pretty much stand-out, especially with the case that allowed wireless charging. But since the S10 Samsung has been making the phones bigger but only marginally better whilst keeping prices high. A couple of years ago I bought an A35, which is premium in everything except that it doesn't have Knox (don't need it) and wireless charging, but less than half the retail price of the S series. It has lots of storage, excellent battery life, great camera and 5 years of updates, which is new for Samsung. It has the usual AI shit, which I've never felt I needed.

Re: "destroying smartphone resale values"

PCScreenOnly

Pity no Samsung has a memory slot.

useful for music

Is this the first sign ....

KittenHuffer

.... of the bubble bursting?!?

Re: Is this the first sign ....

lglethal

The first rider of the AIpocalypse - Secondhand Smartphones with AI Features...

Re: Is this the first sign ....

Guy de Loimbard

pint for you good Sir or Lady Knight.

Also, please tell me your views on the other 3 riders?

Re: Is this the first sign ....

The Dogs Meevonks

There have been about a dozen 'first signs' in the last 6 months... the backlash is growing... but it's still strongest amongst those that understand how worthless it is in pretty much all 'generative' forms... Until we reach a critical mass where general consumers tell them to fuck off and refuse to use it... the bubble won't burst.

But burst it will... they are reliant on being able to collect your data, sell you a subscription and serve you ads... and the numbers being invested cannot be recovered in the typical 'shareholder attention span' who demands 'line goes up and to the right' every 3 months.

Doctor Syntax

"A recent CCS Insight survey found 47 percent of buyers would actually pay more for a phone with AI features"

Did 53% said they'd pay more for a phone without them?

Not really, I suppose but it does say half your target market is not seeing value in them. That should be a warning sign.

Ker-ching ... whooops ... Sorry wrong Ker-ching for the wrong company !!!

Anonymous Coward

Is there anything that 'AI' touches that actually makes money !!!???

[Apart from Journalists for the Media Orgs ... got to keep those clicks going ... Consultancy firms that publish yet another 'AI' survey or FOMO report on future directions ... Memory & HDD producers selling whole year production runs ... Sales people pitching 'AI' trials into ALL orgs, if possible ... etc etc]

Hang on a minute [Facepalm] !!!???

I was Right & Wrong at the same time ... there is lots of money to be made from 'AI' ... as long as you are NOT the actual 'AI' Tech Bros !!!

Everyone else selling all the kit, infrastructure and new build DC's for yet MORE 'AI' (plus the odd stockmarket 'bounce' ... 'put options' for all !!!) are making 'loads of Money'

:)

Re: Ker-ching ... whooops ... Sorry wrong Ker-ching for the wrong company !!!

Guy de Loimbard

Bang on the money.

More cash was allegedly made from shovel sales in the gold rush, than there was from the gold, or lack thereof!

42 percent of people in the UK are willing to trust AI.

Bebu sa Ware

" 42 percent of people in the UK are willing to trust AI. Contrarily, the vast majority of people are concerned about the negative outcomes of AI, and 80 percent believe regulation is required. "

I imagine you could replace AI with Reform UK or anything equally dubious and arrive at the same conclusion.

After Brexit it is a mystery to me why anyone would bother polling the great British unwashed. Hardly likely to get a consistent or even rational result.

Re: 42 percent of people in the UK are willing to trust AI.

heyrick

I'd have thought "Boaty McBoatface" would have been the ultimate answer to the question "should we ask the public?".

Re: 42 percent of people in the UK are willing to trust AI.

The Dogs Meevonks

Local council where my friend lives asked for names for new dustbin collection lorries... You got the usual... I was disappointed my old gamer tag wasn't amongst them. 'DustyBinLaden'

So people who bought a smartphone with "AI" as an investment

Anonymous Coward

Are losing their shirts ?

Oh dear. Too bad. How sad. Never mind.

Re: So people who bought a smartphone with "AI" as an investment

heyrick

Sometimes you want a decent enough smartphone that it has a good camera, a load of memory (of both kinds), and a processor that doesn't suck...

...and all this AI rubbish comes along for the ride.

AI

elsergiovolador

I only use one AI feature on the phone. I hold the AI button and then say: "Set the timer for 10 minutes".

Imagine this probably cost many hundred billions to achieve.

Re: AI

katrinab

Siri could do that before AI was a thing.

And I'm not at all convinced that the new AI-enhanced Siri made things any better in that department.

Re: AI

elsergiovolador

Witnessing my friend trying to harness Siri on a daily basis, I am not so sure. I can mumble the timer instruction and it will still understand. Siri might want to play Bailando instead.

AI phone

Anonymous Coward

no thanks

47 percent of buyers would actually pay more for a phone with AI features

heyrick

Be more specific.

I have no problem with an AI to help me get a better photo, or to post process my photos to edit out stuff I was too distracted to notice at the time.

But I have turned off all the Gemini stuff on my phone. Don't trust it, not interested.

Re: 47 percent of buyers would actually pay more for a phone with AI features

elsergiovolador

Turned off or is it hiding in the hedges with binoculars on?

Know what my last use of ChatGPT was ?

JimmyPage

A conversation about what phone I could get with as little to no "AI" shite as possible.

Amusingly, when I said I didn't trust "AI", it replied "Me neither". (Alerting me to the fact that our of laziness I had not disabled "enthusiastic mode").

The Illiterati Programus Canto 1:
A program is a lot like a nose: Sometimes it runs, and
sometimes it blows.