JM Review | Planned Obsolescence Isn’t the Only Path to Sustainable Business Growth

By Tea，Jointing.Media, in Zhuhai, 2024-12-31

Modern products are increasingly short-lived, often failing within just a few years of use. When minor issues arise, consumers are frequently advised to replace rather than repair devices—a trend driven by scarce replacement parts and repair costs that often exceed the price of new purchases. This intentional shortening of product lifespans, coupled with manufacturers discontinuing support for older models, constitutes a deliberate corporate strategy termed planned obsolescence (or “planned汰旧”). By designing products to become technologically outdated, functionally limited, or physically irreparable, companies artificially stimulate demand, boost sales, and fuel short-term economic growth.

Key Characteristics of Planned Obsolescence

Planned obsolescence is an industrial strategy rooted in consumerism, defined by four core practices:

1. Engineered Product Shortevity
Products are deliberately designed with limited lifespans through:
Substandard materials: Use of wear-prone components or fragile parts.
Non-repairable designs: Sealed units (e.g., glued batteries) or components that degrade irreversibly.

2. Forced Technological Redundancy
Older products are rendered obsolete via:
Hardware incompatibility**: New technical specifications (e.g., charging ports, processing standards) that break backward compatibility.
Software manipulation**: Updates that throttle performance (e.g., slowed smartphones) or disable functionality (e.g., non-supported apps).

3. Systematic Repair Barriers
Manufacturers actively hinder maintenance through:
Proprietary restrictions: Specialized tools (e.g., pentalobe screws), unavailable spare parts, or encrypted repair software.
Cost inflation**: Repair pricing strategies that make fixes economically irrational (e.g., replacing a $300 smartphone screen vs. buying a new $400 device).
Physical sabotage: Fragile connectors, adhesives replacing screws, or components prone to planned failure (e.g., printer ink chips).

4. Artificial Demand Generation
Sales cycles are accelerated by:
Functional expiration**: Products programmed to self-disable (e.g., ink cartridges blocking use after preset page counts).
Perceived obsolescence**: Marketing campaigns framing older models as inadequate (e.g., “5G-ready” labels stigmatizing 4G devices).

Planned Obsolescence vs. Sustainable Innovation

The earliest documented case of planned obsolescence traces back to lightbulbs. In 1924, a secret pact known as the Phoebus Cartel was signed in Geneva by global monopolies—including Germany’s Osram, the Netherlands’ Philips, France’s Compagnie des Lampes, and the U.S.’s General Electric. This collusion aimed to artificially shorten bulb lifespansto maximize profits. Pre-cartel bulbs lasted 2,500 hours; post-agreement, they were engineered to fail at 1,000 hours. Violators faced penalties—calculated in Swiss francs—for exceeding lifespan limits.

Modern-Day Planned Obsolescence: Industry Case Studies

This strategy remains pervasive, particularly in tech and consumer electronics:

Apple (2010s): Phased out iPhone 6s support (e.g., halted sales and reduced repairs), pushing users toward newer models.
Microsoft (2014): Terminated Windows XP security updates, forcing upgrades to Windows 7/8.
Canon (ongoing): Discontinued technical support and parts for older camera models to drive new purchases.
Nokia (early 2010s): Abandoned feature phone lines to accelerate smartphone adoption.
Dell (ongoing): Obsoleted legacy hardware support to compel enterprise and consumer upgrades.
Sony (2016): Ceased PlayStation 3 production and support to transition users to PS4.
Ford (ongoing): Retired older vehicle models while limiting spare parts availability.
Samsung (ongoing): Reduced repair services for older TVs to promote new technologies.

Beyond Obsolescence: Profitable Alternatives

Many companies thrive without planned obsolescence by prioritizing long-term value:

1. Durability-Driven Design

Tesla: Extends vehicle lifespan via over-the-air software upgrades (e.g., battery optimization, autonomous driving enhancements).

Mercedes-Benz & BMW: Build premium, repairable vehicles with decade-long parts availability, fostering brand loyalty.

2. Service-Centric Innovation

Amazon: Retains customers through expanding services (e.g., Prime, AWS) rather than disposable hardware.

IBM & Cisco: Monetize enterprise solutions via continuous tech support and modular upgrades.

3. Sustainability as Strategy

Patagonia: Designs ultra-durable apparel, offers free repairs, and resells used gear through its Worn Wear program.

Columbia: Focuses on weather-resistant, long-lasting outdoor gear to minimize replacement cycles.

4. Industrial Longevity Models

Caterpillar: Generates recurring revenue through maintenance contracts and legacy equipment support for decades-old machinery.

The Environmental Cost of Planned Obsolescence

Planned obsolescence has drawn widespread criticism for its ethical, economic, and environmental impacts. While it may occasionally spur technological innovation, its negative consequences are profound—generating massive waste, perpetuating unsustainable consumption cycles, and causing irreversible harm to natural resources. Some scholars even argue that planned obsolescence constitutes corporate environmental crime, as it prioritizes short-term profits at the expense of consumer trust and environmental sustainability.

The Case of Smartphones

A study by geologists at the University of Plymouth’s School of Geography, Earth, and Environmental Sciences highlights the environmental toll of smartphone production:

Resource extraction: Manufacturing a single iPhone requires mining 10-15 kilograms of ore, including 7 kg of high-grade gold ore, 1 kg of typical copper ore, 750 g of tungsten ore, and 200 g of nickel ore.

Carbon emissions: Producing one phone emits an average of 49.18 kg of CO2 equivalent. Given that a tree absorbs 11.32 kg of CO2 annually, it takes 4.34 trees to offset the carbon emissions of one phone.

Global impact: In 2022, 5.3 billion phones were discarded worldwide, equivalent to the annual carbon absorption of 23 billion trees—enough to circle the Earth 560 times.

The Global E-Waste Crisis
According to the United Nations’ Global E-Waste Monitor 2020:

E-waste generation: In 2019, the world generated **53.6 million metric tons of e-waste, averaging 7.3 kg per person. Since 2014, global e-waste has grown by 9.2 million tons and is projected to reach 74.7 million tons by 2030—nearly doubling in just 16 years.

Recycling rates: Less than 20% of e-waste is properly recycled. The remainder is either landfilled or illegally exported to developing countries, where it is processed under unsafe and unregulated conditions, posing severe risks to public health and the environment.

Discarded electronics contain hazardous substances like mercury, lead, and cadmium. When improperly disposed of, these toxins can leach into soil and groundwater, causing widespread contamination and long-term ecological damage.

What Can Be Done?

To abandon the strategy of planned obsolescence, innovative business models are essential. Many startups are exploring the circular economy. For example:

Grover, a German company, offers subscription services for laptops, smartphones, and other tech devices, pricing based on depreciation rates.

Huidu, a green packaging materials company, adopts a rental model, charging monthly fees. Within the normal wear period, customers only pay rent without additional wear costs.

ROEHL, a Chinese subscription-based lifestyle service company, provides subscription-based home appliances, replacing the linear economic model of “resource-manufacture-disposal” with a low-carbon alternative.

The rise of the “sharing economy” in recent years has also spurred business model innovations across various sectors, enabling traditional companies to achieve new growth.

What can consumers do? Fix products when they break to extend their lifespan; purchase well-maintained used items or donate those no longer needed but still functional;Opt for products with long lifespans, robust repair policies, and strong recycling programs; choose products that are guaranteed to last a long time or have a good repair and recycling policy; and look for brands that prioritize durability and offer multi-year warranties on spare parts；Look for companies that prioritize durability and offer multi-year spare parts guarantees.

Remove the firewood from under the stove to stop the water from boiling. Legislation at the national level to stop this practice, which generates a lot of pollution, is also important. In Europe, legislative measures have been taken towards the right to compensation.

For example, all products sold in Spain from 2022 must have a three-year warranty and manufacturers are obliged to guarantee spare parts for 10 years. Apple was fined 25 million euros by the French Consumer Protection Agency for reducing the execution speed of some iPhones through a system update without informing users in advance.

Experts have called for the promotion of “durability labels” to ensure that consumers are fully aware of the lifespan of the products they buy, while urging producers to take responsibility for waste management. Once companies are forced to pay a price for waste, they will work to make their products more reusable.

（DeepSeek also contributed to this article)

References:

https://zh-cn.renovablesverdes.com/%E4%BB%80%E4%B9%88%E6%98%AF%E8%AE%A1%E5%88%92%E6%8A%A5%E5%BA%9F/
https://www.x-mol.com/paper/1509602760881922048/t
https://finance.sina.com.cn/stock/usstock/c/2019-09-28/doc-iicezzrq8906203.shtml
https://baijiahao.baidu.com/s?id=1726999857675593478

Edited by DeepSeek, DeepL

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