Malaysians now can Rent Smartphones & gadgets – Diving into Cinch’s Device Rental Model
Traditionally, Malaysians acquire high-end smartphones through upfront payments, monthly instalments, or “buy now, pay later” schemes. A new alternative, however, is beginning to surface: renting devices via a Device-as-a-Service (DaaS) platform.
Cinch, one of the players in this space, claims that its model offers flexibility, lower financial barriers, and potential environmental benefits. Cinch was founded by Mr. Mahir Hamid in 2023 in Singapore and recently expanded its offerings in Malaysia.
We spoke with Cinch Chief Operating Officer Arvin Singh over Zoom and he explains how this approach works in the Malaysian context.
Device Subscription: The Mechanics and Benefits
Cinch’s rental model enables subscribers to access devices such as phones, tablets, or gaming devices for a fixed monthly fee rather than paying the full price upfront. At the end of a contract period, subscribers are presented with three options:
- Purchase the device outright, with an adjusted buy-out price based on payments already made
- Extend the subscription, typically at a lower rate
- Swap to a new device and start a fresh contract
According to Arvin, the rental model drives sustainability the most as a device’s useful life can be stretched to five years or more, above the global average of 3.5 years. We ourselves have, or know someone, with old phones in working condition hiding in our drawers somewhere that are not utilized once a new phone enters our lives.
A rental model ensures that a working device can be used by someone instead of the phone sitting in a drawer or in a landfill.
Who will likely use Cinch?
Common motivations of Cinch users include a desire for flexibility, avoidance of long-term telco contracts, lowered upfront spending, and some form of accidental damage coverage. Arvin reveals that most of the users tend to extend the subscription or upgrade to a new one.
Analysis of patterns on the platform shows that flagship smartphones account for the majority of subscriptions, particularly around major new launches. For Malaysia, the iPhone 17 base 256GB model is available for rental at RM217 per month with a 12 month contract, working out to a total of RM2,604 and an option to upgrade to a new device after the subscription period; compared to buying a new one outright at RM3,999.
In Singapore, Cinch’s offering includes televisions and appliances, but the Malaysian segment currently focuses on flagship and high-demand mobile devices.
Business Usage on the Rise
A notable characteristic of Cinch Malaysia’s rollout is its business-focused strategy driven by Arvin’s local team. Large organisations in sectors like engineering and logistics use the platform to equip staff with devices without major capital expenditure. Additional features exist for business clients, such as device tracking, managed upgrades, and capacity to downsize device fleets, reducing IT management burdens and costs.
How to return a device on Cinch?
Upon conclusion of a subscription, Cinch requires devices to be returned with original packaging and accessories, along with a factory reset to clear personal data. The company then conducts its own diagnostics and data wipe, refurbishes devices (replacing any worn parts with certified components), and makes them available for subsequent users. Devices deemed beyond refurbishment are recycled—part of Cinch’s wider stated commitment to reducing e-waste.
Accidental Damage, and Eligibility to be a Cinch user
In the event of any accidental damages, Arvin states that Cinch covers a significant portion of the cost for accidental damage repairs, up to 90%, so that users can also use devices with a greater peace of mind. The remaining 10% is borne by the subscriber, and there is a company assessment to determine eligibility for coverage.
Eligibility to subscribe generally requires Malaysian citizenship, minimum age of 18, and successful completion of both eKYC (online identity verification) and credit checks. Approvals can be rapid, and they are working towards instant approvals as they gather more customer data points to improve the process.
Payment Issues and Device Loss
Subscribers who miss payments may be subject to late fees. Arvin indicates that Cinch’s team will attempt to offer solutions—including device returns or downgrades—if financial difficulties arise, but continued non-payment may result in a report to credit bureaus. Responsibility for safeguarding rented devices still rests with the user. If a device is lost or stolen, Cinch manages the situation on a case-by-case basis and typically requires evidence, such as a police report.
Conclusion
Renting devices is a new way to experience and try out different new devices without having a high capital outlay and worrying about buying and selling that comes with ownership. This can be especially useful for business users who need to scale up or down quickly without the upfront capital expenditures.
For everyday Malaysians, the device-as-a-service provided by Cinch is definitely a smart way to get one’s hands on devices for short periods before settling on one, or perhaps, always having a different device every 3 months!
