The average US consumer plans on keeping their smartphones for about 2.75 years (32.9 months) before upgrading, according to a new survey from Strategy Analytics.
That's a sizeable increase from 2018 when US consumers were on average holding on to their smartphones for 27.9 months. "This year is going to be the longest point we've seen" in the upgrade cycle, Strategy Analytics Director Linda Sui told PCMag.
The research firm recently polled more than 2,500 US smartphone owners in an online survey, and found that older consumers—the Baby Boomers—planned on sticking with their existing smartphones for more than three years (39.7 months).
The age group to upgrade the fastest were millennials, or Generation Y, who on average planned on using their existing phones for 30 months (2.5 years).
Strategy Analytics blames the longer upgrade cycles on US mobile carriers no longer offering subsidies to help customers pay for new smartphone models like they did back in 2013 and 2014 when the replacement cycle time was under 20 months.
"US consumers now have to pay the full (product) price by themselves. Under this shift, more and more consumers have decided to hold on to their smartphones for a longer time," she said.
Meanwhile, as subsidies disappear, smartphone prices are on the rise. Flagship smartphones for Apple and Samsung can now start at $1,000 or more. "There's also been no major hardware innovations," Sui added. "So people have no motivation to replace their smartphones."
The survey matches previous findings, which have also indicated the smartphone upgrade cycle among US consumers has moved beyond two years to now almost three. However, Strategy Analytics expects smartphone sales will pick up next year as more 5G-enabled smartphones launch.
"The result is starting next year, the replacement cycle should get back to a shorter cycle," Sui added.
Smartphone users are keeping their phones longer than they used to
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