Phones for rent: Is leasing about to replace buying?
This article may contain personal views and opinion from the author.
It seems like we hear about price hikes every year or two these days. While affordable phones have become more reliable, they are still experiencing a slow but steady price increase.
A recent report from Bloomberg’s Mark Gurman suggests that Apple might be facing challenges with phone prices, making the company consider subscription-based leasing for its iPhones once again.
With other major phone manufacturers like Samsung exploring similar ideas, rising international tariffs, and the fact that everything is a subscription nowadays, I couldn't help but wonder whether we will soon be renting phones instead of buying them.
People tend to buy their phones outright or get them at reduced prices by bundling them up with mobile plans. That’s still the case to some extent, but things started to change around 2014 when carriers introduced monthly payment programs that allowed customers to upgrade their phones every year without a large upfront cost.
Apple took a page of the carriers’ book and jumped on this trend by launching the iPhone Upgrade Program in 2015, which essentially turned phone ownership into a subscription. Customers who opted for the program paid monthly in exchange for AppleCare+ coverage and a new iPhone model each year.
Yet, renting still isn’t the primary option customers go for when buying a new phone. Many still prefer paying the phone’s full price from the get go or going for secondhand/refurbished models.
It’s clear that phone manufacturers see some potential in this model. While Apple stopped its iPhone Upgrade Program, the recent tariffs brought news that the company could bring it back.
A more recent example is Samsung, which shared plans for an "AI Subscription Club" earlier this year. The program lets people in the country subscribe to a Galaxy S25 series phone for 12 or 24 months by paying a fixed monthly fee. According to the company, the cost is KRW 5,900 per month (around $4.09), meaning users can access a Galaxy S25 for just $48 over the course of a year.
Google tested a similar program back in 2021 called "Pixel Pass", bundling Pixel phones with Google services. Like many of Google’s experiments, though, it ended after two years due to low consumer interest.
In the U.S. and many other markets, carrier installment plans are already widely used. As smartphone prices continue to climb, leasing or subscription models could become even more common. For many customers, getting a $1,500 phone through an affordable monthly plan — often bundled with regular upgrades, protection, and additional services — has become the preferred way to upgrade.
There will always be people who avoid subscription plans, but if the offers become highly attractive and more transparent (i.e. no hidden costs and fine-print conditions), there’s a good chance that number will drop.
It’s also worth noting that consumers globally have become comfortable with subscriptions for services like Netflix, professional platforms and apps. Considering that, smartphone subscriptions are not that far-fetched of an idea.
At the end of the day, a more widespread adoption of phone leasing depends on how affordable the monthly payments are, as well as clear and simple terms that users can understand.
The secondhand market has grown tremendously over recent years. According to market intelligence firm IDC, the global market for refurbished smartphones grew nearly 10% from 2022 to 2023 and is expected to reach nearly $110 billion by 2027. One major reason is that phones now receive longer software support, extending their usable life with ongoing security updates and new features. And let's not forget that refurbished devices can be significantly cheaper, often up to 80% cheaper than brand-new models.
But if phone leasing programs offer affordable monthly payments without hidden fees or complications, they have the potential to attract more users. Leasing can provide customers with newer devices, regular upgrades, and included maintenance—benefits typically unavailable with secondhand phones.
However, there's also the environmental impact of leasing to consider. A poorly managed leasing model could increase electronic waste if frequent upgrades lead to higher production levels.
A recent report from Bloomberg’s Mark Gurman suggests that Apple might be facing challenges with phone prices, making the company consider subscription-based leasing for its iPhones once again.
The slow transition from buying to renting
People tend to buy their phones outright or get them at reduced prices by bundling them up with mobile plans. That’s still the case to some extent, but things started to change around 2014 when carriers introduced monthly payment programs that allowed customers to upgrade their phones every year without a large upfront cost.
Apple took a page of the carriers’ book and jumped on this trend by launching the iPhone Upgrade Program in 2015, which essentially turned phone ownership into a subscription. Customers who opted for the program paid monthly in exchange for AppleCare+ coverage and a new iPhone model each year.
Soon after, other similar programs started appearing. Samsung rolled out its own upgrade plans in 2016, which were especially popular in Korea and Europe, allowing customers to avoid intimidating upfront prices.
Yet, renting still isn’t the primary option customers go for when buying a new phone. Many still prefer paying the phone’s full price from the get go or going for secondhand/refurbished models.
Leasing, buying, secondhand: Pros and Cons
| Aspect | Leasing (Subscription) | Buying New (Outright) | Buying Secondhand / Refurbished |
|---|---|---|---|
| Upfront Cost | Low or none | High – full retail price (if no offers) | Low to moderate – significantly cheaper than new |
| Monthly Payments | Yes – continuous until you cancel or switch programs | No (unless financed separately) | No ongoing payments (some refurbished models can be financed separately) |
| Ownership | No – you return the phone or buy it out | Yes – you fully own the device | Yes – you own the device outright |
| Upgrade Frequency | Frequent – often annually, built into the plan | Whenever you choose | Whenever you choose |
| Convenience | Very convenient – includes upgrades and support | Medium – simple, but you handle upgrades or trade-ins yourself | Medium – lower cost but you must vet the seller/device |
| Included Extras | Often includes insurance, AppleCare/Samsung Care, etc. | Usually not included (must be purchased separately) | Rarely included, varies by seller |
| Environmental Impact | Mixed – good if phones are refurbished, bad if encouraging overuse | Neutral to negative if device is replaced frequently | Positive – extends product life and reduces e-waste |
| Software Support Lifespan | Full – always using latest device | Full – but limited to each phone’s support cycle | Shorter – may have fewer years of updates remaining |
| Total Long-Term Cost | Higher – especially if you keep leasing indefinitely | Lower – especially if phone is kept for 3–5 years | Lowest – but may require earlier replacement or repairs |
| Best For | Users who want the latest phone with minimal hassle | Users who prefer long-term value and full device ownership | Budget-conscious or eco-conscious users |
Manufacturers are testing the waters
It’s clear that phone manufacturers see some potential in this model. While Apple stopped its iPhone Upgrade Program, the recent tariffs brought news that the company could bring it back.
A more recent example is Samsung, which shared plans for an "AI Subscription Club" earlier this year. The program lets people in the country subscribe to a Galaxy S25 series phone for 12 or 24 months by paying a fixed monthly fee. According to the company, the cost is KRW 5,900 per month (around $4.09), meaning users can access a Galaxy S25 for just $48 over the course of a year.
Google tested a similar program back in 2021 called "Pixel Pass", bundling Pixel phones with Google services. Like many of Google’s experiments, though, it ended after two years due to low consumer interest.
Will renting replace buying completely?
In the U.S. and many other markets, carrier installment plans are already widely used. As smartphone prices continue to climb, leasing or subscription models could become even more common. For many customers, getting a $1,500 phone through an affordable monthly plan — often bundled with regular upgrades, protection, and additional services — has become the preferred way to upgrade.
It’s also worth noting that consumers globally have become comfortable with subscriptions for services like Netflix, professional platforms and apps. Considering that, smartphone subscriptions are not that far-fetched of an idea.
At the end of the day, a more widespread adoption of phone leasing depends on how affordable the monthly payments are, as well as clear and simple terms that users can understand.
Leasing vs secondhand: affordability and environmental impact
The secondhand market has grown tremendously over recent years. According to market intelligence firm IDC, the global market for refurbished smartphones grew nearly 10% from 2022 to 2023 and is expected to reach nearly $110 billion by 2027. One major reason is that phones now receive longer software support, extending their usable life with ongoing security updates and new features. And let's not forget that refurbished devices can be significantly cheaper, often up to 80% cheaper than brand-new models.
But if phone leasing programs offer affordable monthly payments without hidden fees or complications, they have the potential to attract more users. Leasing can provide customers with newer devices, regular upgrades, and included maintenance—benefits typically unavailable with secondhand phones.
But if it's done responsibly, leasing could also support sustainability by promoting a circular economy, as it will refurbish returned devices for resale, which can reduce waste and help conserve resources.
For instance, choosing a refurbished phone instead of a new one can reduce environmental impact by up to 91%, preventing the extraction of about 180 lbs of raw materials and the emission of approximately 55 lbs of greenhouse gases.
At the end of the day, though, the attractiveness of leasing versus buying secondhand hinges on affordability and convenience. If done right, it could offer a practical and eco-friendly alternative to both buying new and secondhand.
Phone leasing is unlikely to fully replace outright purchases or the growing secondhand market. Ownership still holds value, especially for those who want full control over their devices or prefer to hold onto a phone for several years. Environmentally conscious buyers may also lean toward refurbished models or long-term use to reduce waste.
Still, we’re clearly moving toward a hybrid market. As smartphone prices continue to climb and economic pressures increase, leasing offers a compelling alternative.
Apple, Samsung, and even Google have already explored the space, and while not all attempts have stuck, the interest remains. In the years ahead, it’s likely that renting a phone will no longer seem like a weird way to have one, but a preferred choice for a growing number of users.
For instance, choosing a refurbished phone instead of a new one can reduce environmental impact by up to 91%, preventing the extraction of about 180 lbs of raw materials and the emission of approximately 55 lbs of greenhouse gases.
At the end of the day, though, the attractiveness of leasing versus buying secondhand hinges on affordability and convenience. If done right, it could offer a practical and eco-friendly alternative to both buying new and secondhand.
Conclusion: A hybrid future
Phone leasing is unlikely to fully replace outright purchases or the growing secondhand market. Ownership still holds value, especially for those who want full control over their devices or prefer to hold onto a phone for several years. Environmentally conscious buyers may also lean toward refurbished models or long-term use to reduce waste.
Still, we’re clearly moving toward a hybrid market. As smartphone prices continue to climb and economic pressures increase, leasing offers a compelling alternative.
Apple, Samsung, and even Google have already explored the space, and while not all attempts have stuck, the interest remains. In the years ahead, it’s likely that renting a phone will no longer seem like a weird way to have one, but a preferred choice for a growing number of users.
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