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Device-as-a-Service (DaaS) / Device Leasing

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Device-as-a-Service (DaaS), or device leasing, is a model in which a consumer or business pays a recurring fee to use a smartphone, laptop, or tablet for a fixed term, while the provider or a financing partner retains ownership and takes the device back at the end of the term for refurbishment and resale.

In a DaaS or leasing contract the customer pays for the use of a device over a period rather than its full price. The provider can keep the monthly fee low because it expects to recover a large part of the device's value at the end of the term, when the returned unit is refurbished and sold again. That expected end value - the guaranteed buyback value or residual value - is the core pricing input of every DaaS offer.

DaaS takes two main forms. In B2B, companies lease laptops and phones for employees, often bundled with management, support, and secure data erasure at return; this overlaps with corporate fleet buyback and ITAD. In consumer markets, telcos, retailers, and manufacturers offer leasing or subscription plans that end in an upgrade, and Apple's move to a leasing-based upgrade model in the US in 2026 put the consumer version in the spotlight.

For the recommerce market, DaaS changes the supply pattern. Instead of devices arriving one at a time whenever owners decide to sell, leased devices come back in predictable waves at the end of 12, 24, or 36-month terms, often in large volumes of the same models. Those cohorts land on the market at the same moment and can depress resale prices for those models if every provider remarkets them through the same channels.

Pricing a DaaS book well therefore needs two things: a defensible residual value forecast at origination, and live resale and buyback price data at return, so returned units are routed to the channel and country paying the most for each model and grade. Providers that remarket returns on stale price lists leave much of the residual value they priced in on the table.

Frequently asked questions

What is Device-as-a-Service (DaaS)?

DaaS is a model in which a customer pays a recurring fee to use a device for a fixed term while the provider keeps ownership, often bundled with support and replacement. At the end of the term the device is returned, refurbished, and resold.

What is the difference between device leasing and buying on instalments?

Instalments spread the full purchase price over time and the customer owns the device. A lease only charges for the expected loss of value during the term, because the provider expects to recover the rest when the device is returned, so the monthly payment is lower.

Who owns the device in a DaaS contract?

Usually the provider or its financing partner. Many contracts give the customer a buyout option to keep the device at the end of the term by paying the remaining value.

How does DaaS affect refurbished device prices?

Leased devices return in large batches of the same models at the end of each term. When those batches are remarketed at once they can push down resale prices for those models, which is why providers need live price data to choose where and when to sell returns.

See also

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