Should you still buy your next smartphone — or subscribe to it instead?

Core Impact Points

• The average global replacement cycle for smartphones is expected to stretch to four years in 2026, up from 3.5 years in 2025, prompting manufacturers to experiment with leasing and subscription programs.
• Apple's Upgrade program, launched in partnership with Klarna, allows 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's Galaxy Forever program in India combines financing with a guaranteed buyback, enabling consumers to upgrade flagship Galaxy smartphones more predictably.
• The shift towards leasing and subscription models is driven by the need to protect margin and retention as pricing pressure mounts, rather than simply trying to get consumers to replace their phones more often.
• The trend is not limited to the US and India, with companies like Raylo in the UK and Grover in Germany building businesses around leasing smartphones and other consumer electronics through monthly subscription plans.
• Analysts expect more companies to follow, with the primary objective of increasing customer lifetime value by improving retention, creating predictable upgrade cycles, and securing a steady pipeline of trade-in devices for certified refurbishment and resale.