Provide an Example of How a Seller Creates Obsolescence

Companies sometimes make their own products outdated on purpose, a strategy known as planned obsolescence. This forces customers to upgrade more often, increasing sales and profits while limiting the lifespan of existing products. While this can drive innovation, it also raises concerns about waste, costs for consumers, and ethical business practices.

Manufacturers create obsolescence in various ways beyond simply making something wear out quickly. Some involve subtle design choices, while others rely on software or marketing tactics.

Frequent Model Releases

Companies regularly introduce new versions of their products, making previous models seem outdated even when they still function well. This is especially common in consumer electronics, where smartphones, laptops, and smartwatches receive annual updates. Each new release typically offers minor improvements—such as slightly better cameras, faster processors, or small design changes—rather than major technological leaps. These incremental upgrades create the perception that older models are less desirable.

Pricing strategies reinforce this perception. When a new model launches, the previous version may be discontinued or receive fewer software updates, nudging consumers toward the latest option. Trade-in programs also encourage upgrades by offering discounts on new purchases while undervaluing older devices, making replacement more appealing than retention.

Subscription-based services further accelerate this cycle. Wireless carriers, for example, offer upgrade programs that allow users to swap phones annually, embedding frequent replacements into their business model. This approach not only increases sales but also normalizes the expectation that products should be replaced regularly rather than used for their full lifespan.

Incompatible Components

Manufacturers often design new products to be incompatible with older accessories, forcing consumers to buy additional items even when they already own similar ones. This is common in the tech industry, where changes to charging ports, docking stations, or peripheral connections render previous versions obsolete. A well-known example is Apple’s shift from its 30-pin connector to Lightning, and later to USB-C, requiring users to purchase new cables and adapters.

Beyond physical connectors, companies modify internal components to prevent interchangeability. Laptop manufacturers frequently alter battery sizes or configurations, making it impossible to use a previous generation’s battery as a replacement. Printer companies embed chips in ink cartridges that prevent older cartridges from functioning in newer models, ensuring a continuous demand for new consumables.

Gaming consoles also follow this pattern. New generations often lack backward compatibility with older game discs or controllers, requiring users to repurchase digital versions of games they already own. While some brands offer limited backward compatibility, the industry still relies on software re-releases to drive sales of newer hardware.

Limited Repair and Replacement Options

Many companies restrict the ability to repair their products, making it difficult or costly for consumers to extend a product’s lifespan. One way they do this is by limiting access to replacement parts. Some manufacturers refuse to sell critical components—such as screens or circuit boards—to independent repair shops or the general public, ensuring that only authorized service centers can perform fixes. This often results in higher repair fees and longer wait times, discouraging consumers from repairing their devices.

Even when parts are available, some products are designed to make repairs impractical. Glue and proprietary fasteners replace screws, making it difficult to open a device without specialized tools. Batteries and memory modules that were once replaceable are now soldered directly onto the main board, meaning a single failure could require replacing an entire unit rather than just one part. This shift increases costs for consumers and generates more electronic waste.

Warranty policies also discourage repairs. Some manufacturers void warranties if a device has been serviced by an unauthorized technician, even for minor maintenance. Others offer extended protection plans at a premium, making repairs seem financially unattractive compared to purchasing a new product. These strategies push consumers toward replacement rather than repair, reinforcing a cycle of continuous spending.

Software Lockouts

Some companies use software to limit the functionality of older products, forcing users to upgrade even when the hardware is still fully capable. One method is remote deactivation of features, where a device that once functioned normally suddenly loses access to key capabilities due to an update. This is common in smart home technology, where manufacturers can disable cloud-based services that a product relies on, rendering it far less useful or even non-functional.

Subscription-based software models also contribute to this issue. Many products now require ongoing payments to access features that were previously available with a one-time purchase. If a user stops paying, the software may lock them out of essential functions, even if they still physically own the device. This approach increases long-term costs for consumers and ensures that older models become impractical to use without continuous financial investment.

Marketing Tactics

Beyond product design and software limitations, companies use marketing strategies to create a sense of urgency around upgrading. Advertising highlights the latest features while subtly portraying older models as outdated, even if they still perform well. This is especially common in fashion, automobiles, and consumer electronics, where branding plays a major role in purchasing decisions. Limited-time promotions, exclusive color options, and collaborations with influencers all contribute to the perception that newer is inherently better.

Retail strategies reinforce this mindset. Some companies phase out older models from stores entirely, making them harder to find even if they are still being produced. Others use psychological pricing, where the cost of repairing or maintaining an older product is positioned close to the price of a new one, making replacement seem like the better option. Trade-in programs often undervalue used items, further nudging consumers toward frequent upgrades.