Question

In: Economics

Planned Obsolescence” that may or may not be applicable today but it seems as though many...

Planned Obsolescence” that may or may not be applicable today but it seems as though many of our electronic devices have to be replaced before they are ‘wear-out’ as they become progressively slower as customers add software upgrades or when the service provider automatically 'updates' the device that challenges the devices capacity to support.

Is the design of such devices and software etc. an example of customer-focused or shareholder focused culture? Please explain

Solutions

Expert Solution

The interesting fact is that there are many strategies and ideas used by many companies to force the user to replace the device. This is actually a planned Obsolescence but for the customers, it might seem to be natural.

What is Planned Obsolescence? Its actually a method in which the consumer good produced rapidly becomes obsolete.  Which forces the customer for replacement. The customer may seem to be either get forced to upgrade or might get convinced to upgrade.

There has been an issue by Apple where people seem to accuse them for forcing people to by new Apple device by downgrading the performance. Later in the press meet they announced it was done to improve battery life on devices which has battery lifespan getting degraded.

Why planned obsolescence?

It is a shareholder focused culture because the main motive is to get a better profit. Its never customer oriented because rather than giving support to the older device for helping people stay on they make the device out of the sheet so that the people get forced to upgrade to their new device. It literally increases the profit for share holders.

Hope the answer is helpful

Please comment for queries

Thanks


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