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Not every country has everyone on contracts doing device renewals every two years, most smartphones are way beyond what most people need, and the common people don't really care about updates.

So eventually a large size of the population will stick to their devices until they break, get stolen/lost, or no longer charge (which in the past could be fixed by buying a new batery).

I really hope the phone makers don't act like US automakers and appliance manufacturers and redesign them to fail after a couple of years. A phone that is $500 to purchase has a rough ownership cost of $44/month if you get the next model 1 year later, $22/month if you wait 2 years, etc. i expect my $1200 iPhone to last at least 5 years. I can imagine paying $4/day and getting the latest every year, if money meant nothing.
And Samsung is like: "hold my beer" and raises prices for their latest galaxy phones by 100 euros.
There has been basically no noticeable differences between a iPhone 8 and 14 for most users. Only reason to upgrade is camera and broken hardware