American citizens are now using mobile devices for longer period times than ever, the Wall Street Journal reports. The increasing amount of time between consumer phone upgrades is attributed to carriers’ abandonment of the traditional subsidized model and consumers seeing less benefit in upgrading devices frequently.
The overall phone-replacement cycle is estimated to reach 29 months during 2016, up from a typical 24 to 26 months within the past two years. As well as a longer replacement cycle, 6.2 percent of the postpaid phone base is anticipated to upgrade devices within this quarter, a decrease from 7.2 percent last year.
Mobile asset managers can expect to see an increase in popularity of the leasing model for enterprises as well as an increased demand for used devices. As users see less value in devices offerings, more will seek out these types of alternatives.