The smartphone industry is betting on subscription models to stay ahead. As devices become pricier and last longer, Apple and Samsung are leading the charge with programs like Apple Upgrade and Galaxy Forever. These schemes allow users to lease or trade in their phones for a monthly fee, offering flexibility over traditional purchase methods.

The shift comes as consumers hold onto their smartphones for an average of 42 months, up from 38 to 40 months in previous years. This trend is prompting manufacturers to explore leasing and guaranteed buyback programs as they try to maintain customer loyalty within their ecosystems.

For frequent upgraders, these plans can offer competitive economics compared to outright purchases. However, for those who keep their phones longer, buying may still be the better option. The key is understanding when leasing makes sense — particularly on higher-storage models where trade-in values don’t always reflect purchase prices.

While smartphones remain expensive, brands see these programs as a way to protect margins and retain customers through more predictable monthly payments. It’s also an opportunity for startups like BytePe in India, which offers subscription-style plans for tech gadgets.