Average Phone Upgrade Cycle Extended Beyond 3.5 Years, Says Verizon CFO

According to Verizon’s CFO (Chief Financial Officer), Tony Skiadas, the average upgrade cycle of phone users has now extended beyond 3.5 years. Speaking at the recent Morgan Stanley Technology, Media & Telecom conference, the CFO said that people are now using their devices for longer periods of time before replacing them with new models.

Verizon’s CFO says the phone upgrade cycle has increased due to improvements in durability & more

According to the Verizon executive, people are choosing to keep their devices longer due to improvements in durability and performance, which is ultimately reducing the phone upgrade cycle. Furthermore, some phone brands like Google and Samsung offer as many as seven years of operating system updates for their flagship smartphones. It is also one of the reasons why people are replacing their phones less frequently, as per the company executive.

Furthermore, the Verizon CFO mentioned that there was a slight uptick in the phone upgrade cycle in Q4 of 2024. However, the company still expects only “mid-single-digit growth” in upgrade volumes this year. Despite this trend, the telecom operator is focusing more on customer retention and maintaining a regulated approach to its product offerings.

The Verizon executive also shared some details about the telco’s wireless business

During the Morgan Stanley Technology event, Skiadas also shared some details about the company’s wireless business. As per the executive, Verizon continues to see steady growth in its wireless business. The telecom operator is expecting to add around 8 million to 8.5 million regular and business wireless subscribers this year. Most of the growth will be coming from people migrating from prepaid to postpaid connections.

Verizon is also witnessing a surge in prepaid users that will continue to contribute to its overall service revenue growth. The company is now projecting wireless service revenue growth between 2% and 5% in 2025. Verizon believes that pricing adjustments from last year and ongoing expansion in fixed wireless services will influence it. Skiadas also emphasised the company’s expansive network coverage, claiming the brand’s network now reaches more than 99% of areas where users live, work, and spend their time.