Smartphone manufacturers often highlight the benefits of AI, but there’s growing concern these features may undermine resale value. UK-based Compare and Recycle states that the Samsung Galaxy S25 depreciated by 63% in one year. This bucks the trend of gradually slowing depreciation in Samsung’s flagship models. Compare and Recycle attributes this sharp decline to Samsung’s emphasis on AI capabilities. Chief Product Officer Lee Elliott notes that the Galaxy S24 was the first to introduce extensive AI-focused features, which have since been a cornerstone of newer models. These features include live translation and AI-enhanced photo editing, heavily marketed as key selling points.

The strategy may have misfired, suggesting AI should be an underlying tool rather than a headline feature. Ranjit Atwal from Gartner explains this doesn’t affect the early adopter market but fails in secondary markets, where cost becomes a priority.

CCS Insight’s Ben Wood highlights that AI is pervasive in high-end devices. A survey shows 47% of consumers are willing to pay more for AI-enhanced phones, albeit in the primary market. Wood suggests Samsung’s strategy, branding its upcoming S26 as an ‘AI phone’, could be risky as public perception of AI sours.

Still, the larger issue of consumer trust remains—while many appreciate AI for specific functionalities, they are wary of broader and more intrusive applications. While AI might not solely be to blame, its portrayal as a critical feature rather than a functional enhancer raises questions about marketing strategies.