What Happens to a 1-Yen Smartphone After 2 Years? A Comprehensive Guide to Returns, Costs, Risks, and the "Best Route" [2025 Edition]

What is the most advantageous option for a device purchased with a "¥1 smartphone" plan after two years—return it, continue payments, or switch carriers? We will organize the information in a practical way, covering costs and conditions for each option, penalties for forgetting to return, additional charges for scratches/damage, and changes since the latest discount regulations.

What Happens to a ¥1 Smartphone After 2 Years? Conclusion and Overview

Most ¥1 smartphones are tied to a carrier's "residual value + return" program (e.g., Docomo's "Itsudemo Kaedoki Program," au's "Smartphone Tokusuru Program," SoftBank's "Shin Tokusuru Support (+)"). These programs are designed to waive the final residual payment if the device is returned around 23 to 25 months.

Therefore, the decision after "two years" largely falls into these three options:

(1) Return the device according to the conditions and get the residual value waived.

(2) Continue using the device by paying the residual value without returning it.

(3) Return the device when switching carriers or upgrading, and switch to another method (e.g., used phone, rental).

If the return deadline is missed, the residual value may be re-installmented, increasing the total cost, so managing the timing around 23 months is crucial. Docomo, in particular, has clearly defined rules for each program, such as "Return by the 23rd month to waive the 24th payment (residual value). If the deadline is exceeded, the residual value will be re-installmented." Therefore, it's safest to calculate the return deadline from the subscription date on a calendar.

Comparison of Return Programs from the 3 Major Carriers (Deadlines, Residual Value, Penalties)

While all three companies' return programs share the core structure of "residual value waiver upon return," they differ in the return period, return conditions, assessment standards, handling of overdue returns, and the amount of additional charges. For example, Docomo's "Itsudemo Kaedoki Program" states: "If you return the device by the 23rd month under a 24-month installment plan with residual value, the 24th payment (residual value) is waived.

If the deadline is exceeded, the payment period is extended, and the residual value is "re-installmented." au's "Smartphone Tokusuru Program" generally expects returns between 13 and 25 months, and if the return conditions are not met, a payment of up to 22,000 yen may be required.

SoftBank's "Shin Tokusuru Support (+)" also requires an additional charge of 22,000 yen (non-taxable) if the assessment conditions are not met, and collection and assessment must be completed by the end of the month following the application. Since the detailed conditions for each company are frequently updated, always check the latest page for your current plan.

• Comparison points: Estimated return deadline / Key return conditions / Handling of overdue returns / Estimated additional costs for non-conforming assessments
  
  

• Docomo: Return by the 23rd month → Residual value waived / Overdue → Residual value re-installmented (payment period extended) / Additional costs: Provisions for non-conforming conditions
  
  

• au: Generally return between 13 and 25 months / Conditions not met → Up to 22,000 yen possible / Continued use is possible even after cancellation
  
  

• SoftBank: Collection and assessment completed by the end of the month following application / Conditions not met → Additional costs of 22,000 yen (non-taxable), etc.
  
  

How Has the "¥1 Smartphone" Changed Due to Stricter Regulations? Impact of the Latest Rules

Since the review of discount regulations came into effect at the end of December 2024, the suppression of excessive device discounts and incentives for switching carriers has intensified, making it harder to offer promotions touting "effectively ¥1." As a result, actual costs have risen, and program designs have been reviewed, leading to a noticeable increase in the total amount paid when using return programs. On the other hand, it's not a "complete disappearance," and situations where low-cost campaigns still remain under certain conditions are confirmed.

In other words, "rule changes = always a loss" is not the case. It's important to compare return-type, outright purchase, used, and rental options based on total cost, considering your usage patterns (data volume, presence of voice line, frequency of upgrades). The latest legal amendments are complex, involving "suppression of excessive discounts," "review of some upper limits," and "introduction of new systems," which has complicated promotional displays. Therefore, it's essential to understand the total cost and conditions, rather than just the "effective" price.

What Happens if You "Forget, Are Late, or Have Damage" When Returning? Real Costs and Solutions

The biggest pitfall of return programs is "deadline" and "condition." If the return is not completed within the deadline, the residual value may not be waived and could switch to re-installment or a lump-sum payment, potentially increasing the total amount beyond what was expected. Additionally, if the device does not meet assessment standards due to scratches, damage, or functional defects, it is common for additional charges to be incurred (e.g., ¥22,000).

SoftBank, in particular, has a clear deadline of "collection and assessment completed by the end of the month following application," and exceeding this risks problems with using benefits. It is crucial to schedule the entire process from "return application → shipping → assessment completion" by calculating back from the subscription month until the 23rd month, and create a checklist for initialization, backup, and accessory confirmation (completed) to minimize errors. Return the device with ample time, and be prepared for possible shipping delays.

• Calculation formula: Subscription year + 2 years, Subscription month - 1 month is the guideline for the "23rd month" (Docomo material). Example: Joined September 2023 → August 2025 is the return deadline.
  
  

• Main assessment items: Exterior scratches, cracked screen, malfunction, waterproof defect, unauthorized modification, missing accessories, etc.
  
  

• Deadlines and conditions vary greatly by carrier and model; always check the latest page.
  
  

Return or Keep: How to Compare Total Costs

For the final decision, it's important to compare "total costs" rather than just monthly fees. While return-type programs offer "residual value waiver," ownership is not retained. This is rational if you plan to dispose of the device after two years, but if you consider extended use or associated costs (repairs, additional fees), purchasing a used device or renting might be more advantageous. Here's a simple comparison template:

• Return-type (carrier):
  
  

• Device installments (minus residual value) × 23 months + communication × 23 months - early bird discount ± additional costs (damage, delay)
  
  

• Outright purchase of a used device (e.g., market price for iPhone/Android):
  
  

• Device price (used) + warranty (optional) + communication (MVNO, etc.) × n months - estimated resale (buyback) value
  
  

• Rental:
  
  

• Monthly rental fee × n months (for short-term/business use) + compensation option (optional)
  
  

The optimal solution varies depending on your usage scenario: "prioritizing the latest model with the intention to return" suits the return-type; "minimizing total cost and prioritizing ownership" favors outright purchase of a used device; and "short-term or seasonal use" is best for rentals. Especially for iPhones, whose resale value tends to be stable, a loop of 2 years of use → buyback often reduces the total burden. The combination of a refurbished product + warranty is also a good fit for cautious users.

The Choice of "Used/Refurbished": Considering 3 Axes of Security, Value, and Practicality

The initial psychological barrier to used/refurbished items is always "Is it really safe?" This should be judged by inspection standards, warranty, and return policy. At PRODIG, we perform operation checks, exterior inspections, and battery condition checks, offering a balance of cost-effectiveness and quality with pricing based on condition ranks.

Rank A indicates "minimal signs of use," Rank B means "general scratches and minor dents, good working order," and Rank C signifies "noticeable scratches but functional." Price differences often don't significantly impact practical use, so if you prioritize no screen cracks or functional defects, wisely choosing B to C ranks can optimize costs.

Furthermore, it offers a wide range of uses, such as a second device (sub-device), tethering, or dedicated business app use, with the appeal of freedom from return conditions and deadlines. For communication, switching to a low-cost SIM for a secondary line can also reduce monthly fixed costs.

• Condition rank guidelines: S (new, unopened) / A (excellent condition) / B (good) / C (noticeable scratches, functional)
  
  

• Cautious users should check "warranty," "initial defect support," and "battery standards"
  
  

• Start with minimal accessories → purchase only what's needed later to avoid waste
  
  

Checklist Before Returning (Completed): Data, Settings, Accessories

Trouble during returns often stems from omissions in initialization or accessory checks. Let's process the following in a checklist format. We'll also explain the rationale behind the key points, so you don't rely solely on tables or lists.

Accessory requirements vary by program, so always check the latest conditions (it's common for an additional fee of ¥22,000 or more to be required if assessment conditions are not met).

Backup (iCloud/Google) → Turn off "Find My" (iPhone: deactivate Activation Lock) → Initialize (completed)

• Remove eSIM/physical SIM, suspend line (if necessary) (completed)
  
  

• Clean device, check exterior (cracks, chips, screen lift, waterproof issues, etc.) (completed)
  
  

• Check accessories (SIM pin, cable, box, etc., only if required by conditions) (completed)
  
  

• Return procedure (Application → Kit receipt → Aim for collection and assessment completion by end of month following application) (completed)

Switching Carriers/MNP and Return Programs: Compatibility and Cautionary Notes

When combining switching carriers (MNP) with a return program, pay attention to the relationship between the return deadline and the timing of the MNP procedure. For example, au's "Smartphone Tokusuru Program" offers flexibility by allowing continued use even after line cancellation, but to receive the benefit, assessment conditions and collection deadlines must be met, making the entire sequence from application → collection → assessment completion crucial.

Other companies also set deadlines for application, collection, and assessment. Therefore, scheduling these processes in parallel with the MNP activation date and new device preparation is the fastest and safest route. If the return is delayed, you risk losing the right to a residual value waiver, so adjust the new carrier's line procedures to a date that does not interfere with the practicalities of returning (shipping, assessment).

Who Still Benefits from "Outright Purchase": Minimizing Total Burden with Used & Buyback

While return-type plans are highly rational for those who always want to use the latest model and return it after two years, if you don't need a flagship every time, prioritize predictable expenses, and value ownership, then "buying used → selling back after two years" is a strong option. iPhones tend to have relatively stable resale value in the used market, and the total cost over two years can be smaller when looking at the difference between the purchase price and the selling price.

For those who want to keep device costs down, targeting refurbished iPhone 12-14 series or SE models is a common strategy. For a secondary device with limited use, an A13-A15 generation device is still practical. Combining this with a low-capacity MVNO plan can also reduce fixed communication costs, aiming for minimal total cost. PRODIG offers the advantage of easily choosing a price range that suits your needs, considering condition ranks and warranty.

The Rental Option: For Short-Term, Business, and Event Use

For short-term use of several weeks to months or spot demand for business or events, renting eliminates initial costs and disposal risks by not buying. The advantage is securing a device for only the necessary period, without the concept of assessment conditions or residual value found in return programs.

It is cost-effective in situations where there is a peak demand for devices, such as for backup units, testing, business trips, exhibitions, or temporary returns to Japan. For corporations, it also functions as an option to avoid holding inventory and depreciation. It is also suitable when you want to ensure the latest OS and compatible bands for a short period.

For individual use, you can either swap in your existing SIM or use tethering. If your purpose and duration are clear, renting is more rational than buying.

If You're Undecided, Start Here: Final Decision Flowchart

Here is a flowchart to help you make a quick final decision. Those who return their phones every two years should primarily use a return-type plan, strictly adhering to deadlines and meticulously managing device condition and accessories. Those who prioritize ownership should aim to minimize total cost by buying a used phone and selling it after two years. Those needing a phone for short-term or seasonal use should rent.

In all cases, reviewing your current usage (heavy/light) and communication costs (high/low data) together can reduce unnecessary expenses. Note that return-type plans always involve two risks: deadlines and assessment. Therefore, if you are not confident in managing your schedule and handling the device, it is safer to lean towards buying used or renting. Carrier conditions change frequently, so we specify the rules as of the publication date (October 2025) and recommend reconfirming with the latest information via links as needed.

Frequently Asked Questions (FAQ)

Q. When is the return deadline?
A. It varies depending on the program and the month of subscription. For example, with Docomo, "subscription year + 2 years, subscription month - 1 month" is a guideline for the 23rd month. Returning by the 23rd month is generally required to waive the residual value. Specific deadlines for application, collection, and assessment should be confirmed on each company's website.

Q. What if I forget or am late to return it?
A. If the deadline is exceeded, you may not receive the residual value waiver, and the payment might switch to re-installment or a lump-sum payment. Pay attention to managing the deadline from application to collection and assessment completion.

Q. What if there are scratches or damage?
A. If the device does not meet assessment standards, an additional fee of **22,000 yen (non-taxable)** or similar is generally required.

Q. Can I still use it if I cancel my line (MNP)?
A. For example, au's program allows continued use after cancellation. However, to apply for benefits, assessment conditions and deadlines must be met.

Q. Are "¥1 smartphones" no longer available after the regulations?
A. They have not completely disappeared, but it has become more difficult to judge their value due to higher actual costs and stricter conditions. Judge by the total cost, not by "effective" pricing.

Finally

The "¥1 smartphone" can be a rational choice for those who want to always use a new model by returning it after two years. However, it requires the user to manage the risks of deadlines, assessment, and additional costs themselves. If you prioritize ownership and minimizing total cost, the loop of buying used/refurbished + trade-in is solid, and for short-term or business use, rental is a strong option. Compare based on your usage and budget, including options that don't require deadline management. Even just following the key points in this article will significantly reduce the cost of return failures (missed deadlines, assessment non-compliance). As a next step, clarify your device's purpose and duration, then start by calculating your return schedule backwards and estimating alternative options.

• PRODIG's Used iPhone List here
  https://prodig-shop.com/collections/iphone
  
  

• Sale Item List (varies by inventory)
  https://prodig-shop.com/collections/sale
  
  

• Junk/Defective Items (for limited experimental use, parts)
  https://prodig-shop.com/collections/junk
  
  

• Device Rental (short-term, event, business use)
  https://prodig-rental.com/
  
  

• Corporate Inquiries (bulk procurement, kitting consultations)
  https://prodig-shop.com/pages/b2b-reception
  

Also read

Sources

• Docomo "Itsudemo Kaedoki Program": Residual value waived upon return / Overdue → Residual value re-installment (includes document on the 23-month concept).Docomo
  
  

• au "Smartphone Tokusuru Program": 13-25 month return, up to ¥22,000 if conditions not met.au

• SoftBank "Shin Tokusuru Support (+)": Collection and assessment by end of month following application, ¥22,000 if conditions not met.SoftBank