What Is Planned Obsolescence?
Let me explain planned obsolescence to you directly: it's a strategy where manufacturers deliberately make sure the current version of a product becomes outdated or useless within a known period. This approach guarantees that you'll need to buy replacements down the line, keeping demand steady.
You can achieve this by rolling out a better model or by designing the product to stop working properly after a certain time. Either way, it pushes you toward the newer versions over the old ones.
Key Takeaways
- Planned obsolescence is the calculated act of ensuring a product's existing version becomes dated or useless within a given time frame.
- In technology, smartphones often have a replacement cycle of two to three years as components wear down.
- In clothing, items like nylon stockings are prone to damage, requiring regular replacements.
Understanding Planned Obsolescence
Certain industries are notorious for this practice. Take fashion: it's common knowledge that nylon stockings will snag or run, so you end up replacing them routinely.
In tech, personal devices like smartphones historically last two to three years before components degrade, and new software or OS versions become incompatible with older hardware. Software itself gets updated with features and file types that won't work on previous versions.
Remember, planned obsolescence isn't the same as perceived obsolescence, where designers tweak styles frequently to make older items seem undesirable and unfashionable.
Computer hardware fits this too, following Moore's Law, which states that the number of transistors on a chip doubles every two years, halving the cost of processing power in the process.
Even car makers do it by releasing new model versions every year.
Special Considerations
Consumers often push back against planned obsolescence, especially when new products don't offer real improvements. This can hurt brands by driving customers away through forced demand.
Consumer Reaction
That said, it's not always viewed negatively. Sometimes companies use it to manage costs, like a phone maker choosing parts that last five years instead of 20.
Apple’s Planned Obsolescence
Apple has been in the spotlight for this. They introduced a program for annual iPhone hardware exchanges with direct payments, which many saw as shortening the replacement cycle to boost sales at your expense.
Critics questioned if Apple could deliver meaningful upgrades that fast, a challenge even for two- or three-year cycles. Apple denies engaging in planned obsolescence, but a Harvard study showed iOS updates slowed older iPhones—not to drive sales, apparently. They settled a 2017 lawsuit over 'batterygate,' paying out to customers and states.
Proof isn't absolute, and some economists say planned obsolescence pushes tech forward. Other makers, like Android phone producers, release yearly updates too.
Other articles for you

Cyclical unemployment occurs due to economic downturns and is a key focus of economic policy to mitigate during recessions.

The Dutch tulip bubble was a 17th-century market crash driven by speculation in tulip bulbs, often cited as a classic example of financial mania but possibly exaggerated.

A variance swap is a financial derivative for hedging or speculating on an asset's price variance.

Capital investment involves acquiring long-term physical assets to support business growth and efficiency.

Privileged communication legally protects confidentiality in specific relationships like attorney-client or doctor-patient, with exceptions for harm or third-party involvement.

Valuable papers insurance reimburses the monetary value of lost or damaged important documents like wills and contracts for businesses and individuals.

Actuarial gains and losses represent changes in a pension plan's projected obligations due to updates in actuarial assumptions like discount rates and expected returns.

A Home Equity Conversion Mortgage (HECM) is a federally insured reverse mortgage allowing seniors aged 62 and older to convert home equity into cash without monthly repayments until they sell, move, or pass away.

The invisible hand is Adam Smith's metaphor for how self-interested actions in a free market unintentionally benefit society through natural supply and demand adjustments.

Good delivery ensures the smooth and valid transfer of securities from seller to buyer, meeting all required criteria.