Americans are holding onto their smartphones and other devices longer than ever, but researchers claim this trend comes with a hidden cost to the economy.
CNBC reports that in recent years, Americans have been clinging to their aging smartphones, computers, and other electronic devices for extended periods. While this may seem like a financially prudent decision on an individual level, experts warn that the collective impact of this trend could be detrimental to the economy as a whole.
According to a recent survey by Reviews.org, the average American now holds onto their smartphone for 29 months, a significant increase from the 22-month average in 2016. This trend is not limited to individual consumers; businesses are also holding onto outdated technology for even longer periods to delay the expense of device rollouts.
Experts claim that lost productivity and inefficiency are the unintended consequences of people and businesses clinging to aging technology. Cassandra Cummings, CEO of New Jersey-based electronics design company Thomas Instrumentation, explains that older devices were engineered when internet speeds were much slower, and they often struggle to keep up with the faster speeds available today. This can lead to networks throttling back their speeds to accommodate the slowest devices, resulting in entire sections of networks running slower than they would if all devices were up to the newer standards.
Despite the challenges, some device manufacturers have found ways to entice consumers to upgrade. Apple, for example, had one of its most successful new launches with the iPhone 17, thanks in part to the allure of AI features.
Najiba Benabess, dean of the business school at Neumann University, warns that rising prices and sustainability concerns are among the reasons “America’s gadgets are aging out,” but the focus should be on the resulting productivity slowdown, increasing repair and maintenance expenses, and limited access to software updates and efficiency gains. Small businesses, in particular, lose valuable hours each year due to lagging systems, creating what economists call a “productivity drag.” On a national scale, this translates to billions of dollars in lost output and reduced innovation.
Jason Kornweiss, senior vice president of advisory services at Diversified, a global technology solutions provider, notes that while individuals still desire the newest devices, corporations with hundreds or thousands of employees are not investing in upgrades at the same rate. This is due to the rapid pace of technological change and the time-consuming vetting processes within large organizations. As a result, businesses are left with increasingly outdated technology, leading to a lack of productivity, inability to multitask and innovate, and needless additional hours of work.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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