Smartphone Rental: The New Business Goldmine for Companies?

Smartphone rentals for whom and by whom? While smartphones are clearly among essential expenses, few consumers can afford to pay a large sum to acquire one.

According to UFC Que Choisir, only 11% of French people feel able to spend more than €600 on their smartphone. Smartphones priced under €200 concern 38% of the population.

Faced with this reality, operators have focused their strategy on offers that allow customers to pay as little as possible for their mobile.

Key stages of this evolution:

• Launch of all-inclusive packages
• Progressive development of rental offers
• Democratization by numerous specialized platforms
• Adoption by smartphone brands themselves

Given the success of this business model, some smartphone brands are also jumping on board.

Central questions of this analysis:

• How is this service a good option for consumers?
• What do brands gain from this approach?
• What is the real scope of this phenomenon?

Let's take a closer look at the scope of this phenomenon and its implications for the French mobile ecosystem.

Smartphone Rental: An Interesting Alternative for Consumers

A smartphone has certainly become essential for everyone today, but its price remains as high as ever.

Operators circumvented this problem long ago by offering phone plans that reduced the phone's price. But that's no longer enough.

Consumers now aspire to completely free themselves from the pure notion of acquisition. By renting rather than buying, they can vary their pleasures while always having a new mobile in their hands.

How the Rental Model Works

The principle of mobile rental is quite similar to other subscription business models.

Typical pricing structure:

• First payment: between €100 and €400
• Monthly rent varies according to brand and operator
• Commitment contract most often 24 months

At the end of said contract, the consumer can then:

• Change phones for a more recent model
• Buy the smartphone at its residual value

Knowing that a user generally keeps their smartphone between 2 and 3 years, this system allows them to always benefit from a high-end, new, and cutting-edge model.

What Are the Advantages for Brands?

We then find the same mechanism as car leasing. The brand strengthens its loyalty with its customer and ensures recurring revenue each month.

Potential penalties:

• If the phone is not returned in good condition, the consumer will face a financial penalty
• This penalty can climb to more than €150

The Real Value for Consumers

The question then is, how is this truly a good deal for consumers?

Simply because they primarily pay for a service rather than the smartphone itself.

Perceived benefits:

• Opportunity to enjoy a smartphone they couldn't afford
• Guarantee of using the latest market product after two years
• Freedom from traditional acquisition concepts

The desire for acquisition is increasingly distant from French priorities. More free, more flexible, this formula appeals.

A Well-Established Business Model

It was Free that launched the movement in 2013. Considered at the time as the mobile industry's little revolutionary, Free dared to offer a somewhat marginal rental service.

Then more and more operators copied this business model by democratizing this rental formula.

Operators offering rental:

• SFR
• Bouygues Telecom
• Orange
• Free (pioneer since 2013)

Samsung's Innovation with Up2You

Besides operators, phone brands have also adopted this system. This is the case with Samsung, which launched a dedicated rental service in May 2016: Up2You.

The interest is undoubtedly to always have the latest market model in your pocket. The consumer remains loyal to the brand for two years while having a recent smartphone in hand.

The Distributor Ecosystem

Distributors have also embraced the business model:

• Fnac
• Lokeo (Boulanger's rental service)
• Specialist Uz'it

The approach is the same with more or less long commitment periods.

Would this be the end of operators' mobile offers? We're not there yet, although rental seems to be increasingly aligned with new consumer needs.

Advantages for brands:

• Enhanced loyalty
• Recurring revenue
• Strengthened credibility

We can see that this enthusiasm for rental crosses the boundaries of mobile operators.

It seems essential today to implement real alternatives to purchase. Consumers are increasingly volatile and want to enjoy the latest trends without parting with a large sum of money.

Smartphone rental joins this idea by offering them an adapted and fully flexible formula.

Phone Rental: An Opportunity for All Profiles

Renting smartphones is no longer reserved for operators or large retailers.

Today, many young companies are entering the phone rental business to attract customers seeking flexibility.

Client Profile Diversity

Offering a smartphone rental service attracts:

• Students with tight budgets
• Professionals seeking flexibility
• Early adopters wanting to test the latest innovations

With accessible rates, short commitment periods, and the ability to regularly change devices, renting your mobile is becoming a norm.

Diversified Range Strategy

For a future lessor, it's therefore strategic to offer different range levels:

Range Type	Target	Advantages
Recent high-end	Early adopters, professionals	Latest innovations, prestige
High-performance mid-range	General public	Optimal quality-price ratio
Refurbished models	Tight budgets, eco-responsible	Accessibility, sustainable approach

By diversifying their smartphone rental offer this way, a brand can capture maximum consumer profiles.

How to Build a Profitable Mobile Rental Offer

Meanwhile, a smartphone rental service can quickly become a profitable complement to a mobile plan.

Some operators have understood this well by directly including the smartphone leasing option in their offers. This allows increasing ARPU (average revenue per user) while building long-term loyalty.

Strategic Partnerships

For a new market player, it's relevant to forge partnerships with:

• Mobile phone suppliers
• Specialized insurance companies
• Logistics and refurbishment services

User Experience Optimization

Not neglecting user experience is key. The faster and more transparent the phone rental process, the higher the chances of converting visitors into loyal customers.

Key elements of good UX:

• Simplified booking process
• Total pricing transparency
• Responsive customer support
• Smooth return management

Today, renting smartphones is no longer just an option: it's a direct response to new consumption patterns.

FAQ: Everything You Need to Know About Smartphone Rental

Is it advantageous to rent a smartphone rather than buy it?

Renting smartphones provides access to the latest models without heavy investment. It's ideal for those who like to change often. Plus, it avoids the value loss associated with resale.

Can you rent a smartphone without commitment?

Some phone rental offers provide flexibility from 4 months. However, most contracts require 12 to 24-month commitments to benefit from advantageous rates.

What happens if the rented phone is damaged?

In case of breakage or malfunction, a mobile rental service often offers insurance. Otherwise, a financial penalty may apply according to the smartphone leasing contract.

Is it possible to rent a refurbished phone?

Yes, more and more players offer refurbished phone rentals. It's an economical and ecological option to enjoy a high-performing mobile at lower cost.

Can you buy the smartphone after the rental period?

Some contracts allow buying the phone at the end of the rental. The price is defined in advance or calculated according to residual value.

How to launch a smartphone rental business?

To launch a smartphone rental business, you must first choose your model: new phones, refurbished, or mixed.

Key steps:

• Plan sufficient initial stock
• Set competitive rates
• Offer complete service: insurance, delivery, customer support

Finally, use a simple platform like Rental to facilitate booking and contract management.

updated April 2025