Samsung’s subscription plan reshapes upgrade cycles and revenue model, IDC says

About 1 in 5 Galaxy S25 buyers in Korea joined the Galaxy Club programme.

Samsung’s smartphone subscriptions could redefine how consumers upgrade devices and how manufacturers earn from hardware, IDC said in a recent report.

The research firm noted that roughly 20% of Galaxy S25 pre-order buyers in South Korea subscribed to the Galaxy Club programme, which lets users exchange their phones yearly for a monthly fee of US$4–6 (₩5,900–₩8,900) and receive up to 50% cashback when returning their devices.

IDC said the scheme could stabilise Samsung’s recurring revenue whilst shortening replacement cycles to about 12–24 months, compared with the typical 24–36 months. It added that the model reflects a shift amongst younger consumers towards flexible payment options rather than outright ownership.