Americans are holding onto devices longer than ever and it's costing the economy
www.cnbc.com
Americans are holding onto devices longer than ever before, and while it may be consumer smart, it comes at a cost to work productivity and the U.S. economy.

The average American now holds onto their smartphone for 29 months, according to a recent survey by Reviews.org, and that cycle is getting longer. The average was around 22 months in 2016.

While squeezing as much life out of your device as possible may save money in the short run, especially amid widespread fears about the strength of the consumer and job market, it might cost the economy in the long run, especially when device hoarding occurs at the level of corporations.

Research released by the Federal Reserve last month concludes that each additional year companies delay upgrading equipment results in a productivity decline of about one-third of a percent, with investment patterns accounting for approximately 55% of productivity gaps between advanced economies. The good news: businesses in the U.S. are generally quicker to reinvest in replacing aging equipment. The Federal Reserve report shows that if European productivity had matched U.S. investment patterns starting in 2000, the productivity gap between the U.S and European economic heavyweights would have been reduced by 29 percent for the U.K., 35 percent for France, and 101% for Germany.

  • blueworld@piefed.worldEnglish
    16·
    4 hours ago

    This article is framed from a capitalist CEO, and while it touches on reality, feels incredibly lost in it’s point.

    Cassandra Cummings, CEO of New Jersey-based electronics design company Thomas Instrumentation. …

    Both the cellular and internet infrastructure has to operate to be backwards compatible in order to support the older, slower devices. Networks often have to throttle back their speeds in order to accommodate the slowest device

    I’d Boohoo, if they actually were thinking about rebuilding the network stack to consider something like MultiPathTCP and reframed the devices to actually use all the networks they were on rather than a single one… But no they want you to by a single provider and depend on that plan… For the economy.

    Further Telecoms choose not to upgrade towers (to save costs). In 2023, AT&T/Verizon spent $10B less on network upgrades than projected. Because they were being profit-driven underinvestment.

    She does go on to say:

    To ease the transition to new technologies, she says there should be designs that are repairable or modular rather than the constant purge and replace cycles. “So perhaps future devices can have a partial upgrade in say ethernet communications rather than forcing someone to purchase an entirely new computer or device,” Cummings said. “I’m not a fan of the throw-away culture we have these days. It may help the economy to spend more and force upgrades, but does it really help people who are already struggling to pay bills?” she said.

    So slightly redeeming.

    The article also makes note of repairing:

    He adds that when people hold onto their phones or laptops for five or six years, the repair and refurbishment market becomes an active part of the economy. But right now, in both European, American, and global markets, too much of that happens in the shadows.

    But this attempt to point out that productivity is lost on old devices:

    The price to the organization is then paid in lack of productivity, inability to multitask and innovate, and needless, additional hours of work that stack up. Workplace research conducted by Diversified last year found that 24% of employees work late or overtime due to aging technology issues, while 88% of employees report that inadequate workplace technology stifles innovation. Kornweiss says he doesn’t expect there’s been any improvement in those numbers over the past year.

    There’s a disconnect between the numbers and behavior. Many workers report that aging devices stifle productivity, but like a favorite pair of shoes or an old sweater, they don’t want to give them up to learn the intricacies of a new device (which they’ll learn and then have to replace with another). Familiarity can trump productivity for many workers. But the result of that IT clinginess is felt in the bottom line.

    Fails to point out the waste of resources and it’s impact on climate, health, and the economy; loss of privacy and it’s impact on democracy, health, and yes the economy; and also how often new things don’t actually help productivity…

    Some how the “Upgrade to help the economy” falls flat when you consider Windows 11 and it’s non-upgrade upgrade. Or MS Office which is still producing Word/Excel/PowerPoint/etc decades later with the same shortcuts. Your ‘productivity lag’ is your boss refusing to train you not your laptop

    I mean if upgrade = economy, why does Apple sit on $165B in cash? They should spend it — not you!

    Profit-driven innovation that wants to sell us the same iPhone with a new camera, is not helping the economy. We need real innovation that disrupts big tech as much as it disrupts everything.

    Oh and that ‘business equipment investment’ from the fed was about factory robots and large capital investments, not phones.