Is Owning Your Next Phone Still Worth It — or Should You Subscribe?

Your team’s phones are showing their age. Three have cracked screens, the batteries drain by lunch, and your newest hire is using a hand-me-down that barely opens your business’s chat apps. You’ve been telling yourself you’ll upgrade them “when the time makes sense.” But the smartphone industry is quietly changing the rules. The biggest question facing you may no longer be which phone to get, but how you get it.

This week Apple launched a new upgrade program in the US that lets customers lease an iPhone, Mac, iPad, or Apple Watch with an option to upgrade, return, or buy later. Samsung has been running a similar program in India called Galaxy Forever, which combines financing with a guaranteed buyback. As premium devices get more elaborate, the industry is betting that subscriptions and leasing plans will become the new way people get their hands on the latest gear.

So, should you still buy your company’s next smartphones? Here’s a practical look at what’s changing, and why it matters for your small business.

TL;DR

Ownership is still the safer path for most Malaysian SMEs. But the rise of subscription and lease models could change the math for businesses that like to keep their teams on newer devices. Watch how these programs evolve locally, and consider the impact on your device lifecycle, maintenance, and resale before you commit.

What This Means

The idea of subscribing monthly for a phone isn’t new. Carriers in the US have offered phone financing and upgrade plans for years. What’s changing is that phone makers themselves are starting to own that relationship. Apple’s Upgrade program, launched in partnership with Klarna, allows customers to lease Apple devices for a monthly term and regularly switch to a newer model. Samsung’s Galaxy Forever program in India does something similar, bundling financing with a guaranteed trade-in promise.

The driving force is clear: people are holding onto their smartphones for longer. Counterpoint Research expects the average global replacement cycle to stretch to four years in 2026, up from 3.5 years in 2025. In the US, premium smartphone owners now keep devices for an average of 42 months, up from 38 to 40 months in previous years, according to IDC. Longer replacement cycles mean fewer new phone sales, which hurts manufacturers’ revenue. Leasing and subscriptions are their way of keeping you connected to their ecosystem — and ensuring a steady stream of used devices flows into the refurbished market.

“These programs fundamentally do not work unless a secondary market exists,” said Max Weinbach, an analyst at Creative Strategies, adding that leasing and guaranteed buyback programs make it possible to sustain the used and refurbished market.

The data backing this shift is worth noting. Here’s a quick snapshot from the article’s research:

Metric	2025	2026
Average global smartphone replacement cycle	3.5 years	4 years
Average time premium smartphone owners keep their devices in the US	38-40 months	42 months

Source: TechCrunch, August 2026

How This Applies to Malaysian SMEs

Malaysian SMEs often run lean. If you have 10 to 50 employees, you probably manage your phone purchases in one of two ways: you buy phones outright when someone joins, or you rely on a postpaid plan with a device bundle from a local carrier. The new leasing and subscription models could give you a third option — one that keeps your staff on current hardware without requiring you to tie up resources all at once.

Consider the scenario of a delivery business. Your drivers need dependable phones for navigation, photo proof of delivery, and messaging. Older phones slow them down, and a broken screen means missed jobs. A subscription model where you can return a damaged unit and get a replacement quickly could be appealing. But only if the program can match the service speed and coverage you’re used to from local carriers. That’s a big question mark for Malaysian SMEs, since Apple and Samsung’s programs are still limited to the US and India. The article notes that analyst firm IDC expects such initiatives to become more common in the premium smartphone segment, but there’s no timeline for Malaysia.

Think about your current staff turnover. If you regularly hire part-timers or interns, the idea of buying a phone and then having to dispose of it when the person leaves can be a hassle. A subscription model could let you return the phone when the person’s stint ends, avoiding the headache of reselling or repurposing. But that convenience usually comes with the obligation to maintain the device in good condition. If your work environment is tough on phones, you may feel more comfortable owning your devices and allowing them to be replaced through your own timeline, not a subscription provider’s rules.

Another angle: your data security. When an employee leaves, do you wipe the phone before you redistribute it? Owning your phone gives you complete control over that process. With a leased device, you’re returning it to a provider that may resell it to someone else. You need to have clear data-wiping procedures either way. The article points out that leasing and buyback programs create a pipeline for certified refurbishment and resale, which is good for the environment and the industry. But it means you, as the business owner, need to be even more careful about what remains on your company data before a device changes hands.

Practical Takeaways

• Review your device lifecycle. How long do you currently keep your staff’s phones? Are they comfortable and productive on them? If your team replaces phones every 3-4 years, ownership still makes sense.
• Watch local carrier plans. Malaysian telcos may eventually offer their own subscription-style device plans. Compare them against your current bundles to see which one truly gives you flexibility.
• Weigh your team’s usage patterns. If your staff are hard on devices, subscriptions might mean stricter return conditions or obligations. Ownership lets you decide when to fix, replace, or retire a device.
• Plan for data security. Whether you buy or subscribe, create a checklist for wiping company data before a device leaves your hands. Verify that it’s done, even if the phone goes back to a leasing program.
• Consider the refurbished market. The success of these programs relies on a healthy secondary market. If you do buy phones, think about how you’ll resell or retire them responsibly. It’s part of the wider change.

Before you decide, ask your team what they actually need. If they’re happy with their current phones and just need a battery replacement, don’t let the hype of “you can get a new phone every year” push you into unnecessary upgrades. As the article’s expert Matt Schulz notes, consumers who keep phones for three, four, or five years are often better off buying outright than subscribing.

For Malaysian SMEs, the near-term strategy is simple: keep an open mind. Subscribe to news about device subscriptions locally, test your existing carrier plans, and always speak to your own team’s needs. The trend is real, but it’s not yet mainstream for us. That could change quickly, and when it does, you’ll be ready to make a smart call — not a panic decision.

The Bigger Picture

The shift toward subscriptions and leasing is not just about phones. It’s part of a broader move from ownership to “access” in consumer technology. Apple’s Upgrade program is designed to keep customers within its ecosystem and protect margins as replacement cycles stretch. IDC analyst Navkendar Singh told TechCrunch that the real driver isn’t shorter upgrade cycles; it’s retention and margin protection. For Malaysian SMEs, this means the phone in your employee’s pocket could one day be managed in the same way you handle your software subscriptions — focusing on the use, not the asset itself.

But don’t expect outright ownership to disappear. The article quotes Cashify CEO Mandeep Manocha, who says leasing, subscriptions, and outright purchases will coexist. “All three business models have a place to exist, and they will continue to do so,” he said. The outcome, at least in the near term, is more choice for you. As long as you’re making decisions based on your team’s actual needs and the operational realities, you’re already ahead. The only thing you shouldn’t do is ignore what’s coming. The ground is moving under your feet — and it’s smart to know which way to step.

This article is written for AutoRunBiz and is based on information from the TechCrunch article by Jagmeet Singh, originally published August 1, 2026.

Ready to Streamline Your Operations?

Your business should run itself. AutoRunBiz deploys AI agents to automate your daily operations — WhatsApp orders, invoicing, customer follow-ups, and accounting. Book a free 15-min ops audit to see where automation fits your business →