Should you still buy your next smartphone — or subscribe to it instead?
Smartphone manufacturers like Apple and Samsung are increasingly pushing leasing and subscription models as consumers hold onto devices for longer. These programs aim to maintain revenue streams and upgrade cycles in a market where hardware innovation has slowed.
Why it matters
This shift reflects a broader change in the consumer electronics business model from one-time sales to recurring service-based revenue.
The smartphone industry’s next battleground may not be the phone itself, but how consumers get it. As premium devices become more expensive, Apple, Samsung, and others are betting that leasing, subscriptions, and guaranteed buyback programs can make upgrading more attractive.
This week, Apple launched Apple Upgrade in the U.S. in partnership with Klarna, allowing consumers to lease an iPhone, Mac, iPad, or Apple Watch for a monthly fee with the option to upgrade, return, or eventually purchase the device. Samsung, meanwhile, has been offering its Galaxy Forever program in India, combining financing with a guaranteed buyback to let consumers upgrade flagship Galaxy smartphones more predictably.
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