Smartphone manufacturers are shifting the goalposts on how you own your tech. As premium devices become more expensive, brands such as Apple and Samsung are testing leasing, subscriptions, and guaranteed buyback programs. The appeal for you is simple: these models can spread payments over time and make a regular upgrade easier to plan. The catch is that they can also keep you tied to a brand or carrier.
On July 28, 2026, Apple launched Apple Upgrade in the U.S. in partnership with Klarna. The lease-to-own program covers iPhones, Macs, iPads, and Apple Watches. Depending on the term, you can pay for 12, 24, or 36 months, then return the device, upgrade, or purchase it for a predetermined amount.
The shift comes as people keep their devices longer. In the U.S., premium smartphone owners now hold onto their phones for an average of 42 months, up from 38 to 40 months in recent years, according to IDC. Assurant reported that the average U.S. device age at trade-in was about 3.8 years in 2025. Longer ownership gives you more value from each phone, but it also leaves manufacturers with fewer chances to sell a new device and fewer used phones entering refurbishment channels.
1. Buy outright when you want the lowest long-term cost
With an outright purchase, you pay the full price and own the phone immediately. This is usually the clearest choice if you expect to keep the device for four years or more. Once it is paid off, you can continue using it without another monthly device payment, sell it when you are ready, or pass it to someone else.
Ownership also gives you the most flexibility. You are not required to return the phone in a particular condition or follow a scheduled upgrade path. The tradeoff is that you take on all the depreciation risk. That matters because trade-in values vary by model, storage capacity, condition, and timing.
2. Use carrier financing when monthly cash flow matters most
Carrier financing spreads the cost of a phone across monthly payments, often over 36 months. In the U.S., carriers have long combined device financing with service plans and trade-in offers. This can make a premium phone easier to fit into a monthly budget, especially when you already plan to stay with the same carrier.
The tradeoff is less flexibility. A carrier plan may connect your device balance, service account, trade-in promotion, and upgrade timing. Before signing, check the total device payments, the length of any promotion, and what happens if you leave the carrier early.
3. Choose lease-to-own when predictable upgrades are your priority
Apple Upgrade is designed for people who already expect to replace their devices regularly. You make monthly payments for a 12-, 24-, or 36-month term. At the end, you can return the device, upgrade, or purchase it under the program’s terms.
This approach can make your upgrade path more predictable. It may also reduce the need to arrange a separate trade-in each time. Samsung’s Galaxy Forever program in India follows a related model by combining financing with a guaranteed buyback for flagship Galaxy smartphones.
Predictability is not the same as savings. The supplied analysis does not establish that leasing is cheaper than buying the same device. To compare the options, add every scheduled payment, fee, tax, and end-of-term purchase cost. Then compare that total with the cost of buying the device, keeping it for the same period, and estimating its trade-in or resale value.
Why the tradeoff matters
These programs are not only about making expensive phones easier to access. They also help manufacturers protect margins and keep customers in their ecosystems as replacement cycles lengthen. IDC’s Navkendar Singh described the main driver as:
“protecting margin and retention as pricing pressure mounts.”
IDC’s Navkendar Singh
The same systems feed the secondary market. Assurant reported that U.S. consumers received a record $6.4 billion through mobile trade-in programs in 2025. Returned devices can be refurbished and resold, which gives manufacturers and retailers another way to earn value from a phone after its first owner moves on.
Which model fits your upgrade habit?
Your habit Model to consider Why it may fit Keep your phone for 4 years or more Outright purchase You avoid ongoing device payments after purchase and can use the phone for as long as it remains useful. Upgrade every 1 to 2 years Apple Upgrade or another lease model You get a scheduled path to a new device, but you should compare the complete lease cost with buying and trading in. Need to spread out the cost Carrier financing Monthly payments may be easier to manage, provided you understand the carrier and promotion terms.
Make the choice with one practical calculation
Start with your actual upgrade pattern, not the phone maker’s preferred schedule. If you normally keep a phone for four years or longer, buying outright is often the simpler path to compare. If you replace it every 12 to 36 months, a lease may offer a smoother upgrade experience, but do not assume it costs less.
Write down the full cost of each option for the same device and the same ownership period. Include monthly payments, taxes, fees, trade-in value, and any purchase amount due at the end. The model with the lower total cost and terms you can comfortably follow is the better fit for your budget.
That approach lets you use leasing for convenience rather than pressure. You can upgrade regularly when that genuinely suits you, or keep the phone you already own when it still does everything you need.
