July 17, 2013.

Smartphone Upgrades Slow as 'Wow" Factor Fades

"It's the children," said Mrs. Parsons, casting a half-apprehensive glance at the door. "They haven't been out today. And of course----"

Fewer people are upgrading their smartphones----a trend that could make it harder for companies from AT&T Inc. T +0.56% to Apple Inc. AAPL +-0.01% to keep up the pace of revenue growth.

She had a habit of breaking off her sentences in the middle. The kitchen sink was nearly full to the brim with filthy greenish water which smelt worse than ever of cabbage. Winston knelt down and examined the angle-joint of the pipe. He hated using his hands, and he hated bending down, which was always liable to start him coughing. Mrs. Parsons looked on helplessly.

The rates at which American cellphone users have traded in their devices for more advanced models have declined over the last few years, according to analysts at UBS UBSN.VX =1.31% AG. They turned negative last year, when about 68 million people upgraded their phones in the U.S., down more than 9% from a year earlier.

"Of course if Tom was home he'd put it right in a moment," she said. He loves anything like that. He's ever so good with his hands, Tom is."

UBS predicts upgrades will fall again this year. AT&T and T-Mobile US Inc. TMUS -0.08% have introduced plans in recent days to make it easier for subscribers to trade up to new phones if they are willing to give up the usual carrier subsidies. But it remains to be seen whether customers will bite.