People Upgrading their Phones Less Often
You would think that as the pace of technology increases, and newer improved phones are hitting the market with more frequency, that the rate of upgrades would be keeping pace. But according to a survey, that figure has actually declined. People currently upgrade their phones every 18 months, up from every 16 months.
Several things are possibly contributing to this, mostly the economy. As more and more people are switching to no contract phones to save money, the lack of subsidized pricing could be causing people to hold onto their phones longer. Early upgrade fees could be another reason why people hold onto their phones a little than they previously did.
The length of time that people hold onto their phones is likely to increase as well. Verizon has recently scrapped their new every two program. Previously Verizon customers who served out their full two year contract were given credits they could use towards buying a new Verizon phone. For example, a user that served out his two year contract could get a $100 credit to use towards the purchase of an iPhone, bringing the total cost down to $99.99, whereas a brand new Verizon customer would have to pay $199.99.
While it’s too early for this change to have an impact on data right now, there is no doubt it will influence people into settling with their current phone rather than running out and buying the latest and greatest down the road.