Key facts
- Apple has launched its Apple Upgrade program in the U.S., allowing customers to lease iPhones, Macs, iPads, and Apple Watches.
- Samsung offers a Galaxy Forever program in India that includes financing and a guaranteed buyback option.
- These new ownership models are emerging as consumers increasingly hold onto their smartphones for longer periods.
- The average global smartphone replacement cycle is projected to reach four years by 2026, up from 3.5 years in 2025.
- Analysts believe these programs are essential for maintaining the secondary market for used devices and for customer retention.
- While leasing can benefit frequent upgraders, outright purchase may be more economical for those who keep devices for three to five years.
Smartphone manufacturers like Apple and Samsung are increasingly shifting focus from outright sales to leasing and subscription models as consumers hold onto their devices for longer periods. Apple's new U.S. program, Apple Upgrade, allows customers to lease iPhones and other devices with options to upgrade, return, or purchase them. Samsung's Galaxy Forever program in India offers similar benefits. This strategy is driven by rising device prices, incremental hardware improvements, and the desire to maintain customer retention and ecosystem loyalty.
Analysts note that consumers are extending their smartphone replacement cycles, with the global average expected to reach four years by 2026. In the U.S., premium smartphone owners now keep their devices for an average of 42 months. These new ownership models are seen as crucial for sustaining the secondary market for used devices and for manufacturers to protect margins and customer relationships.
While leasing can be financially advantageous for frequent upgraders, outright purchase may be more economical for those who keep their phones for three to five years. However, for those who replace devices every one to two years, the costs can be comparable, especially for higher-storage models. Companies in India, the UK, and Germany are also experimenting with similar subscription-based plans for electronics.
Experts believe these alternative ownership models will coexist with traditional outright purchases, representing a long-term evolution in how consumers acquire smartphones. The trend is also creating opportunities for startups in the subscription space, particularly targeting younger professionals seeking access to premium devices without the upfront cost.