Wallet vs Gadget: Why your next smartphone upgrade might be years away

Techinsights reveals in its new report that the global smartphone replacement rate is continuing to decline due to multiple factors such as the uncertain global economic outlook, reduced subsidies, the increase of low-income prepaid users, and the improvement of smartphone quality.

Due to inflation, interest rate increases and uncertainty about the economic outlook, the global smartphone replacement rate may fall to a new low of 23.5% in 2023, and the replacement cycle will also be extended to 51 months.

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This number is the lowest in the past decade and indicates changing consumer decision-making when it comes to smartphone purchases and replacements. Analysts believe that the decline in smartphone replacement rates is closely related to economic pressure.

As the global economy fluctuates, consumers have become more cautious in spending on non-necessities. As a relatively high-end consumer product, smartphones have naturally been affected.

In addition, with the recovery of the economy and the popularization of 5G technology, it is expected that the replacement rate of smartphones will gradually pick up starting in 2024.

// Source