Apple, Samsung and rental startups are promoting smartphone leasing as premium devices become more expensive. The strategy offers monthly payments, predictable upgrades and a supply of used phones for resale.
Apple launched Apple Upgrade in the United States with Klarna this week. Customers can lease an iPhone, Mac, iPad or Apple Watch, then upgrade, return or purchase it later. Tim Cook said regular upgraders and Apple’s strong resale values make the plan suitable.
Samsung’s Galaxy Forever programme follows a similar path in India. Buyers pay half the cost of a Galaxy S26 Ultra or S26 Plus through 12 no-cost instalments. After one year, they can return, retain or upgrade the device. Samsung guarantees a 50% buyback and includes Samsung Care+ protection.
Longer Replacement Cycles Change the Market
Consumers now keep phones longer as prices and component costs rise. Smaller hardware improvements also keep older devices useful. Counterpoint expects the global replacement cycle to reach four years in 2026, up from 3.5 years in 2025. IDC says US premium-phone owners now keep devices for 42 months, compared with 38 to 40 months previously.
“These programs fundamentally do not work unless a secondary market exists,” Creative Strategies analyst Max Weinbach said. “The only way to sustain a used or refurbished market is to make sure devices enter that market, and leasing and guaranteed buyback programs make that possible.”
LendingTree analyst Matt Schulz said, “Leasing definitely isn’t for everyone, but it can make sense, especially for someone who upgrades often.” Buyers who keep phones for three to five years usually save more through outright ownership.
Weinbach added, “It’s important to stress the fact this is an upgrade program that’s done via a lease, rather than just a leasing program.” Frequent upgraders may pay roughly the same or less, particularly on high-storage models.
Phone Makers Chase Loyalty and Resale Value
“The real driver isn’t shorter upgrade cycles; it’s protecting margin and retention as pricing pressure mounts,” IDC analyst Navkendar Singh said.
IDC’s Nabila Popal said, “It’s the interest-free financing of 36 months and aggressive trade-ins of up to $1,100 that have made the U.S. the region with the highest smartphone average selling prices.” Apple and Samsung hold more than 80% of the US market.
India’s BytePe says more than 80% of its customers choose subscriptions over purchases or traditional instalment plans. Its users are young professionals seeking premium phones without large upfront payments. Raylo in Britain and Grover in Germany also lease electronics.
Counterpoint’s Tarun Pathak said companies want “improving retention, creating predictable upgrade cycles and securing a steady pipeline of trade-in devices for certified refurbishment and resale.” He expects financing to remain the main affordability tool.
Cashify CEO Mandeep Manocha expects leasing, subscriptions and purchases to coexist. “All three business models have a place to exist, and they will continue to do so,” he said. “There is a natural transition that may happen from complete ownership to leasing, but it’s a long journey.”
For frequent upgraders, leasing can offer convenience and predictable costs. People who keep phones for years will usually gain more value from ownership.
