Consumers are hanging onto their mobile phones 5% longer according to J.D. Power and Associates' latest report. The average mobile phone lifespan is now 17.5 months, an increase from 16.6 months in November 2006. This marks the first increase in ownership longevity since 2002 when consumers held onto their phones for an average of 18.4 months.
"One possible reason for this significant increase in the length of handset ownership is that more customers are initiating or renewing their service contracts for a longer period - typically for two years, as opposed to just one year, which was customary a few years ago," said Kirk Parsons, senior director of wireless services at J.D. Power and Associates, in a statement.
The study also found that the price customers pay for mobile phones has dropped from an average of $103 in 2002 to $93 in 2007. Also, 36% of customers report receiving a free mobile phone when subscribing to a wireless service, up from 28 % in 2002.