Is the use of old phones problematic for the economy?

Do you really need to buy a new smartphone every year? Probably not. If you’ve got a decent phone from the start, it’s likely that the phone will still do its job perfectly. The same goes for not buying a new tablet or upgrading your gaming PC to add just a few percent more speed.

Companies from tech makers to automakers release a slightly different version of the same old product every year to generate excitement and increase revenue, when the truth is that most of us can get by just fine with the old versions. So maybe it is better to upgrade only when it is really necessary.

But have you considered that with this hoarding and thrifty look, you are harming the entire economy that depends on continuous consumption for its prosperity? This question was raised in a new report from CNBC. The report warns that extending the useful life of a device, although in the short term and given widespread concerns about the state of the labor market and consumer purchasing power, will save money, but in the long run it can be costly to the economy, especially when this hoarding behavior also occurs at the corporate level.

According to a new survey from Reviews.org quoted by CNBC, the average time an American user will keep a smartphone will reach 29 months by 2025, which has increased by 7 months compared to 2016. In fact, we are failing in our unwritten duty to preserve an economy that already relies on the vague promises and hype surrounding artificial intelligence (AI).

It is not difficult to understand people’s reluctance to upgrade their phones. Mobile phones are much more capable now than they were a decade ago, and their prices reflect that fact. Their cameras are incredibly advanced, their displays offer very smooth and high refresh rates, and their internal hardware is powerful enough to play heavy games, edit videos, participate in video calls, and browse social networks.

Even so, corporations still need consumer spending to keep their profitable wheels turning. Producing a product that has a long life is not profitable in the short term. Instant Pot, the seller of popular slow cookers, filed for bankruptcy in 2023 after declining sales of its products. The reason for the death of the business was clear: Instant Pot products were too good and durable, and once a customer bought one, they didn’t need to buy it again. After bankruptcy, the company was bought by a private investment company, and this new owner, during an antitrust case, even tried to gain the support of the Trump administration by introducing a model called MAGA.

Of course, old devices like smartphones need repair, and this need has kept a whole section of companies active in the field of repair services. But many companies, including Apple, which is one of the most famous examples, try to make it as difficult as possible to repair the device; Be it repair by the user or a third party facility. This is done through methods such as non-identification of non-original parts by the device software.

Steven Athwal, CEO of The Big Phone Store, which sells refurbished phones, told CNBC that if governments and tech giants seriously supported the refurbishing process, old devices could become part of a sustainable economic cycle. According to him, in this case, the need for constant replacement will disappear and the financial pressure caused by constant upgrades will be removed from the shoulders of small and large businesses.