Forced obsolescence: Is the practice of making things breakable finally reaching breaking point?

IMAGE CREDIT:
Image credit
iStock

Forced obsolescence: Is the practice of making things breakable finally reaching breaking point?

Forced obsolescence: Is the practice of making things breakable finally reaching breaking point?

Subheading text
Forced obsolescence has made manufacturing companies rich by creating products with short lifespans, but pressure from consumer rights groups is ramping up.
    • Author:
    • Author name
      Quantumrun Foresight
    • November 1, 2021

    Forced obsolescence, where products are designed to become outdated or non-functional, brings considerable economic and environmental implications. In reaction to the costs and waste created by this practice, stakeholders ranging from consumers to governments are pushing back, prompting regulatory changes such as the "right to repair" laws. Such dynamics also influence market competition, societal behaviors, and expectations, with consequences extending from job market shifts to technological innovation pace.



    Forced obsolescence context



    The concept of forced obsolescence, where manufacturing companies intentionally design their products to become non-functional or out of date after a specific period, has sparked considerable debate and controversy. Observers have particularly criticized this approach for limiting consumers' capacity to repair their belongings, largely because replacement components are often outrageously priced or difficult to find. For instance, in 2020, the French Government fined Apple USD $27.3 million for intentionally slowing down older iPhone models through software updates, a practice known as "throttling." This case not only underscores the prevalence of planned obsolescence but also demonstrates an increased regulatory scrutiny and consumer backlash.



    The implications of large-scale production extend beyond consumer frustrations, presenting significant environmental concerns. In particular, the United Nations (UN) has revealed that over the past five years, there has been a 21 percent surge in electronic waste (e-waste) from discarded technology products in landfills. In addition, only 17.4 percent of this waste is collected and recycled. 



    The rising popularity of the Right to Repair Movement is putting some control back into consumer hands. Starting in 2021, the EU requires appliance producers to supply spare parts for up to 10 years. In France, as of January 2021, companies must now put “repairability” ranking labels on their smartphones and laptops.Additionally, the member-funded trade association, Digital Right to Repair Coalition, was formed in 2013 to lobby for legislation that encourages repairs not just for the usual tech products, but also for healthcare wearables such as pacemakers and hearing aids.



    Disruptive impact



    For consumers, forced obsolescence can significantly increase lifetime costs of products, as they frequently need to replace items that have been intentionally designed to fail or become outdated. Additionally, it undermines the creation of a robust second-hand market, where consumers could otherwise save money by purchasing used goods that retain their functional utility. To exemplify, consider the smartphone market where annual model updates and intentional slowing of older devices often compel consumers to upgrade. 



    On a broader scale, forced obsolescence influences the evolution of industries and competition. While it drives continuous innovation and economic growth, it also creates a power imbalance favoring large corporations that can invest in constant product development. Smaller companies may find it difficult to compete if they cannot keep pace with the product life cycle. For example, Apple and Samsung release new models of their devices every year. Smaller companies without the resources to follow such a rapid development and release cycle might struggle to maintain their market share.



    Finally, while the policy response has been somewhat fragmented, there is a growing trend towards establishing "right to repair" laws, which mandate manufacturers to make their products more repairable and to supply spare parts for a longer period. One notable advancement in this regard occurred in 2021 when the European Union (EU) implemented a series of right-to-repair laws under the European Green Deal, aiming to promote sustainability. This legislative framework compels manufacturers to design products that are easier to repair, reuse, and recycle.



    Applications for forced obsolescence 



    Some industries that might be affected by the forced obsolescence pushback include:




    • Repair service shops experiencing increased demand as more repair-friendly legislation is passed.

    • Consumers developing a culture of waste, contributing to a rise in materialistic values and consumption-driven lifestyle.

    • The public experiencing a decline in trust towards large corporations, potentially leading to consumer activism and boycotts as they demand greater product durability and transparency in product lifecycles.

    • A shift in job market demands, as industries focusing on product repair and maintenance may see more business. However, jobs in product development and innovation may still see exponential growth.

    • Increasing digital divide, especially in developing countries, where citizens may not have the resources to continually update their devices. 

    • Technological advancements focusing more on incremental changes rather than revolutionary or breakthrough innovations, as companies might prioritize the release of new models over substantial, transformative research and development.

    • Governments experiencing pressure to develop and enforce policies that balance consumer rights, sustainability, and economic growth, leading to increased legislative action and regulatory oversight of product lifecycles and manufacturing practices.

    • A greater push towards developing and implementing circular economy principles, with an increased focus on product longevity, recyclability, and repairability, leading to potential industry transformation and more sustainable consumption and production patterns.



    Questions to comment on




    • How long do your tech gadgets or appliances last? Have you noticed a difference between products you purchased in earlier decades compared to recent ones?

    • Would you be interested in repairing items instead of just buying new ones? Why or why not?


    Insight references

    The following popular and institutional links were referenced for this insight: