Longer-Lasting Devices Boost Sustainability, Hinder Productivity

Americans are keeping their smartphones and other technology for longer periods, a trend that is reshaping consumer behavior and posing economic challenges. The average American now holds onto their smartphone for 29 months, up from 22 months in 2016, according to a survey by Reviews.org. This shift, driven by cost-consciousness and sustainability concerns, has led to a productivity drag as outdated devices struggle to keep pace with modern technological demands.

The economic implications are significant. A Federal Reserve report cited in the same study estimates that each additional year companies delay upgrading equipment results in a 0.33% decline in productivity. If U.S. investment patterns had matched those of Europe since 2000, the productivity gap between the U.S. and European economies could have been reduced by up to 101% for Germany. Experts warn that businesses clinging to aging technology face inefficiencies, including slower processing speeds and outdated software, which hinder innovation and operational efficiency.

Cassandra Cummings, CEO of Thomas Instrumentation, highlighted how older devices strain infrastructure: "Networks often throttle back to accommodate slower devices, dragging down entire systems." This issue is compounded by the fact that many small businesses and individuals cannot afford frequent upgrades, creating a cycle of obsolescence that stifles economic dynamism.

Steven Athwal of The Big Phone Store, a UK-based refurbishment specialist, argues that while device longevity is a success story for sustainability, the lag in replacing outdated hardware is a hidden cost. "Businesses are trying to squeeze modern workloads out of old hardware, which creates a productivity drag," he said. Athwal advocates for a regulated circular economy that supports repair and refurbishment, extending the lifespan of devices while ensuring they remain functional for current needs.

Solutions to mitigate the economic impact include modular designs and repairable technology. Cummings suggests future devices could allow partial upgrades, such as improved Ethernet capabilities, rather than requiring full replacements. Athwal adds that governments and tech companies could boost software support and parts access for older models, reducing the financial burden on users.

Despite these challenges, manufacturers like Apple have found ways to incentivize upgrades. The recent launch of the iPhone 17, coupled with advancements in artificial intelligence, has enticed some consumers to replace their devices. However, Najiba Benabess, dean of Neumann University's business school, notes that rising prices and sustainability concerns are complicating decisions for both consumers and businesses. "While keeping devices longer may seem financially responsible, the hidden cost is a quieter erosion of economic competitiveness," she said.

Workplace research underscores the problem: 88% of employees report that inadequate technology stifles innovation, while 24% work overtime due to outdated systems. Jason Kornweiss of Diversified, a technology solutions provider, attributes this to corporate IT departments struggling to keep up with rapid technological changes. "Employees cringe when IT hands out new devices, even if they're meaningful upgrades," he said.

As the debate over device longevity continues, the balance between cost-saving and economic vitality remains a critical issue. With Americans increasingly prioritizing sustainability and affordability, the challenge for policymakers and businesses is to foster innovation without exacerbating the productivity gap.

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