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PLATFORMS Signal 89

Should you still buy your next smartphone — or subscribe to it instead?

WHY IT MATTERS

For software builders, longer replacement cycles mean a broader installed base of older hardware that must be supported. Additionally, manufacturer-controlled leasing programs increase platform lock-in and ensure a steady supply of devices into the refurbished market, expanding the reach of older device models.

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The three things worth knowing

01

Apple and Samsung are shifting toward direct hardware subscriptions and leasing to own the customer relationship traditionally held by wireless carriers.

02

The primary business driver for these programs is protecting margins and ecosystem retention rather than simply accelerating hardware upgrade frequencies.

03

Guaranteed buyback and leasing programs will increase the flow of devices into the refurbished market, creating a larger user base operating on older hardware.

THE CLUSTER

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