What is Planned Obsolescence?

1906 reads · Last updated: December 5, 2024

Planned obsolescence is a business strategy where products are designed and manufactured with a deliberately limited lifespan, compelling consumers to purchase new replacements after the old ones become obsolete. This strategy aims to increase sales and profits by shortening the product lifecycle. Planned obsolescence can be achieved through various means, such as:Technical Obsolescence: Products become outdated due to technological advancements that render them incompatible with new technologies.Functional Obsolescence: Key components of a product are intentionally designed to fail after a certain period.Psychological Obsolescence: Marketing and advertising create a perception among consumers that their old products are out of date, prompting them to buy new ones.This strategy is common in many industries, including electronics, household appliances, and fashion. While planned obsolescence can drive economic growth, it also raises issues such as environmental pollution and resource waste, and has been criticized by consumers and environmental organizations.

Definition

Planned obsolescence is a business strategy where products are designed and manufactured with a deliberately limited lifespan, encouraging consumers to purchase new replacements once the product fails. This strategy increases sales and profits by shortening the product's usage cycle.

Origin

The concept of planned obsolescence dates back to the early 20th century, particularly in the 1920s American automotive industry. As markets became saturated, manufacturers sought new ways to stimulate consumption, making planned obsolescence an effective strategy.

Categories and Features

Planned obsolescence can be achieved through various means:
Technical obsolescence: Products become technologically outdated and incompatible with new technologies.
Functional obsolescence: Key components of a product are intentionally designed to fail after a certain period.
Psychological obsolescence: Marketing and advertising make consumers believe that old products are outdated, creating a desire to purchase new ones.

Case Studies

Case 1: Apple Inc. faced accusations of planned obsolescence due to battery issues in its iPhones. Users noticed performance drops in older iPhones after system updates. Apple eventually admitted that software updates affected battery performance and offered discounted battery replacements.
Case 2: General Motors in the mid-20th century stimulated consumer purchases by releasing new car models annually, a classic example of planned obsolescence.

Common Issues

Planned obsolescence is often criticized as unethical because it deliberately shortens product lifespans, leading to resource waste and environmental pollution. Consumers should be aware of product warranties and lifespans and consider repairs instead of replacements.

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