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

Key Points:

• Apple and Samsung are increasingly focusing on leasing, subscriptions, and guaranteed buyback programs to make upgrading premium smartphones more attractive amid rising device costs and longer replacement cycles.
• Apple launched its Upgrade program in the U.S. with Klarna, allowing consumers to lease devices with options to upgrade, return, or purchase, while Samsung offers a similar Galaxy Forever program in India combining financing and guaranteed buybacks.
• These programs aim to keep customers within brand ecosystems by converting costly smartphone purchases into predictable monthly payments, addressing challenges posed by longer device usage and rising prices.
• Analysts note that leasing is most beneficial for consumers who upgrade frequently, while those keeping phones for several years may be better off buying outright; the programs also support a thriving secondary market for refurbished devices.
• The trend is global, with startups in India, the UK, and Germany offering similar subscription models, and experts expect financing and leasing to coexist alongside outright purchases rather than replace them entirely.