Leasing phones probably isn’t something you’ve thought about because leasing usually revolves around vehicles, an area where leasing is pretty common, but according to a new report, more and more American consumers are actually considering leasing their next phone as opposed to owning it. Leasing phones isn’t an entirely new thing. Most, if not all, of the major US carriers have offered some form of phone leasing for years, but when it started, more people were interested in buying their phones outright or, at the very least, over time. That seems to be changing.
People are keeping their phones longer these days. With new annual upgrades subsiding little by little, it makes sense that consumers would see less of a reason to actually own a new phone, and instead decide to lease it.
29% of American smartphone owners say they’re more likely to lease their next phone
Leasing a phone might sound like a weird concept to you, but it’s really not all that bad if you think about it. When you buy a phone, you aren’t generally keeping it forever. You will eventually replace it with something new. Even if that isn’t annually, when you do upgrade, you’re probably get rid of your old device. These days, this commonly happens through trade-ins.
That being said, leasing a phone is not much different. Instead of buying it upfront or paying for it in installments, you’re essentially renting the phone, and then you can swap out to something else when it’s time to upgrade. You also get the opportunity to swap out the device or return it if you want something else. You generally can’t do this a few months in when buying a new phone.
According to a new survey report from Allstate, 29% of American smartphone owners are considering leasing their next phone instead of purchasing. Out of those considering the option of leasing, 21% say they’re doing it because of the flexibility to swap out or return the device. 24% say it’s because of a lower upfront cost. Meanwhile, 20% say it’s because of built-in protection, insurance, and repair services, and another 24% says it’s due to more frequent upgrades. All sensible reasons.
Interestingly, 48% of American smartphone owners surveyed are now keeping their phones for at least three years. Prioritizing battery life and durability, as well as performance, are key factors in the choice of which phone to buy, with battery life being the top reason American consumers are choosing the devices they do. Only 22% surveyed said they upgrade phones annually.
Camera, storage, and screen size are also important factors
In addition to the battery life, three other traits that American consumers are looking for in a device are a good camera, a decent amount of storage capacity, and, of course, the price has to be reasonable.
When it comes time to upgrade, consumers could stick to these factors when choosing their next device. As for what happens to the old one, only 48% said they would trade it in for a discount on the new phone. 52% keep it as a backup, while the remaining 28% give it away to a friend or family member.
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