Why Apple and Samsung are pushing subscriptions over ownership

Apple recently partnered with Klarna to launch a U.S. leasing program for iPhones and Mac computers, following Samsung’s Galaxy Forever initiative in India. These programs allow consumers to pay a monthly fee for access to the latest hardware, with the option to upgrade periodically. The strategy serves a dual purpose: it lowers the barrier to entry for expensive devices and ensures that handsets return to the manufacturer, fueling a secondary market that is becoming critical to industry margins.

Market data from IDC shows that U.S. owners now keep their devices for an average of 42 months, a significant increase from previous years. This longevity has squeezed hardware manufacturers, who face fewer opportunities to capture repeat sales. "The real driver isn’t shorter upgrade cycles; it’s protecting margin and retention as pricing pressure mounts," said Navkendar Singh, associate vice president at IDC. While carrier financing has historically dominated the U.S. market, brands are now eager to own the customer relationship directly rather than ceding it to wireless providers.

Despite the push, analysts remain divided on whether subscriptions will replace traditional ownership. While leasing appeals to frequent upgraders who want to avoid the depreciation of high-storage models, those who prefer keeping their phones for several years generally find outright purchase more economical. Industry experts like Cashify CEO Mandeep Manocha expect these models to coexist, noting that while the industry is nudging users toward recurring payments, the transition away from full ownership will be a gradual, long-term shift.