As per stats released by Citi Bank, an average American keeps his phone for 29-month between upgrades. As the contract options are retiring and the American have to pay the full price, they retain their handsets for longer.

American keep their phones for longer taking full advantage of price they paid

Three to four years back the average retention period of smartphone was exactly two years. This is due to the general availability of contract period that makes it feasible to hold iPhone for 24-months before upgrading to a new phone. Now it is because of the subsidizing period that has led to the longer upgrade times.

Another important aspect is that now few features are behind added to the next flagship offer. Customers usually leases the handset on monthly basis for 18-months and after that it trade in it for the latest model. Or the customers has to pay off the balance to keep the phone.

In 2011, the postpaid customer figure was 35%, which slipped to 32% in 2014 and went down to 30% last year. Now this year, this could get even lower than 30%.