Report On Leasing Mobiles

Report on Leasing Mobiles
Deloitte global predicts that in 2016 consumers will sell outright or trade approximately 120
million used smartphones generating more than $17 billion for their owners at an average
value of $ 140 per device. This is a marked increase from 80million smartphones traded in
2015 with a value of $11 billion
For consumers the primary incentives to sell a device rather than keeping it as a spare, giving
it to family member or throwing it away- will likely be driven by the ease of doing so, the
lusyer of owning a latest model device and the trade in value an offer
For smartphone vendors the direct benefits of a throwing second hand market are three fold.
First, encouraging an annual replacement cycle among a growing number of users may
increase annual sales. Second, the availability of a formal second-hand market could make
their devices more affordable to cust,oers with smaller budgets, without ghavnig to create less
profitable, budget variants of their device, used refurbished premium smartphones may ve
more appealing than brand new unbranded devices. Third, there would likely be a margin in
processing used phones, similar to that earned by car dealers
he largest mobile operators in South Korea and Singapore – SK Telecom (SKT) and Singtel –
introduced two-year handset leasing plans in early June for a number of iPhone and Samsung
Galaxy models.
Singtel said its rental programme is designed to “make premium handsets more affordable”
and is available to customers on SIM-only plans. The monthly charge for ten different iPhone
and Galaxy models runs from SGD35 ($26.42) to SGD62. Customers have the option to
upgrade the handset after a year by paying SGD200.
SKT’s leasing service, launched on 1 June, is proving popular in South Korea, with 25 per
cent of its new customers opting to rent, Yonhap News Agency reported. The Galaxy S9
(64GB) costs KRW34,872 ($31.40) per month, while the iPhone X (64GB) is KRW47,746.
In a statement Singtel surprisingly claimed customers can “save” up to SGD578 off the retail
price of the Galaxy S9 if they lease the handset for a year and SGD358 over two years
For those not looking to pass on devices to a friend or relative, or sell it, leasing is a cost-
effective option.
RentoMojo
Online leasing platform, RentoMojo has become the first start-up in India to lend phones
on a rental basis at almost 60 percent of their market value. Bengaluru-based fintech start-
up, RentoMojo announced that its customers would now get to own a phone for a
particular subscription period by paying rental monthly instalments (RMIs) which would
be 60 per cent of the total market price of the handset. The company has tied up with
major smartphone brands such as Apple, Samsung, Vivo, Oppo, Xiaomi, Nokia among
others for its subscription services. With the smartphone market in India growing, the
number of users is expected to rise to 859 million by 2023. The average price of a
premium smartphone is `35,000 and one out of five Indians want to upgrade to the latest
model of smartphone every year which makes phone leasing a lucrative segment.
Sprint-
Sprint’s (S) device leasing has helped it regain its financial position. The take rate of Sprint’s
leasing plans has surpassed its instalment plans in the last few quarters. As a result, due to the
financial benefits of leasing, Sprint’s lease revenues could increase going forward.
According to a FierceWireless report on April 21, 2017, “Sprint launched an ambitious

promotion in an effort to leverage Samsung’s latest flagship phone.” The report added,
“Sprint launched a two-for-one deal enabling users to pay $31.25 a month to lease two
devices when they activate a new line. The promotion will last only one week and will enable
customers to upgrade to a new Galaxy device any time after 12 lease payments under the
carrier’s Galaxy Forever plan.”
Sprint’s handset leasing benefits
Additionally, during the Deutsche Bank Media, Internet and Telecom Conference held on March
7, 2017, Tarek Robbiati, Sprint’s chief financial officer, spoke about the benefits handset leasing
has offered to Sprint: “We’ve been pretty good promoting leasing and allowing customers to
benefit from being always with the latest and greatest technology. And as a return to those forms
we face multiple choices available to us either we can sell those phones or we can recycle those
phones and give them a second life. And we have done so.”
Robbiati added that Sprint views leasing as a way to monetize assets multiple times
over their life. As an example, he said, “The phones that we get back are put back into the market
for prepaid, with different types of levels of guarantee.”
Conclusion-
There is enough evidence that people like to use smart phones and also with that they want to
show people how well off they are.
So, leasing an expensive phones at a lower cost is a good way to attract many of the
customers and also the above mentioned 3 companies have been successful in their approach
We should dive into the business but before that we should segment are market

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According to a FierceWireless report on April 21, 2017, “Sprint launched an ambitious

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