Smartphone Makers Shift Toward Leasing and Subscription Models
The smartphone industry is increasingly adopting leasing, subscription services, and guaranteed buyback programs to encourage regular upgrades as device prices rise and replacement cycles lengthen. Apple recently launched its 'Apple Upgrade' program in the U.S., partnering with Klarna to allow customers to lease devices like iPhones or Macs for a monthly fee before upgrading, returning, or purchasing them outright. Samsung has also introduced similar initiatives such as Galaxy Forever in India, combining financing and buybacks. These models aim not only to make premium smartphones more accessible but also to sustain the secondary market by ensuring used devices continue entering it regularly. Analysts suggest these programs can be financially beneficial for frequent upgraders while helping manufacturers retain customers within their ecosystems. However, success depends on convincing consumers that leasing or subscription plans are better than outright purchases. Experts note that those who upgrade every year or two may find the economics favorable compared to traditional buying and trading in devices.
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Topics: Apple Upgrade consumer behavior leasing programs Samsung Galaxy Forever smartphone industry