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One in three smartphones is replaced before its time. Desire for novelty or corporate strategy? A Bocconi study reveals the endless cycle of consumption that empties wallets and pollutes the planet

In Italy, one in three smartphones is replaced within a few years, often while it is still fully functional. Behind this accelerated consumption cycle lies an increasingly widespread phenomenon: planned obsolescence. Millions of devices end up unused in drawers or, worse, as e-waste. Why?

According to the study Planned Obsolescence and Smartphone Replacement: Empirical Evidence on the Italian Market by Nicoletta Corrocher and Sara Paganuzzi of Bocconi University, the problem is not only technological, but essentially psychological: the desire for novelty and marketing strategies drive consumers to replace devices long before they are truly obsolete. And while psychological obsolescence accelerates replacement cycles, many would like their smartphones to last longer, showing a clear gap between expectations and reality.

But there is a sign of change: a growing number of Italians are choosing secondhand smartphones, driven by an increased environmental awareness and the need to save money. This shift is already reshaping the market and opening up new opportunities for more sustainability-conscious manufacturers.

“Planned obsolescence not only empties consumers’ wallets, it fuels an unsustainable consumption cycle,” says Nicoletta Corrocher. “It is time for companies to rethink their business models and for consumers to rethink the way they shop.”

The study sheds light on an inconvenient truth: most smartphones don’t stop working, they just stop being liked. But we all pay the price for this programmed dissatisfaction, in economic and environmental terms.

What is planned obsolescence and how does it work?

Planned obsolescence is an intentional strategy adopted by manufacturers to reduce the lifespan of products, thereby incentivizing the purchase of new models. In the smartphone market, this practice shows up in different forms:

  • Material obsolescence: accelerated physical deterioration due to the use of brittle materials, such as glass for back covers, which increases vulnerability to damage.
  • Functional obsolescence: discontinuation of software updates for older models, making them incompatible with new applications and features.
  • Psychological obsolescence: desire for novelty fueled by fashion trends and companies’ marketing strategies, pushing consumers to replace devices more frequently.
  • Economic obsolescence: high repair costs relative to the replacement price of the device, often exacerbated by components that are difficult to repair, such as non-removable batteries.

Economic and social implications

One of the most significant economic effects of planned obsolescence is a higher cost for consumers. Many users would like their devices to last longer, but find themselves forced to replace them much sooner due to problems with software upgrades, material wear and tear, or simply the desire to have the latest model.

This frequency of replacement involves a significant outlay over a 10-year cycle, considering not only the cost of the device, but also that of accessories and repairs. The difference between the desired and actual lifespan represents a hidden cost to consumers, fueling widespread distrust of manufacturers, who are accused of intentionally designing devices with short lifespans to fuel a self-feeding consumption cycle.

“On top of this,” Corrocher points out, “planned obsolescence does not only have economic implications, but also environmental and social ones, as it accelerates resource extraction, energy use and e-waste generation.” 

In fact, the study points out that the largest carbon footprint of smartphones comes mainly from manufacturing, making it essential to extend the life cycle of devices to reduce their environmental impact.

Toward more sustainable consumption

The study shows that Italian consumers are indeed slowing the frequency with which they replace their smartphones, reflecting a growing sustainability awareness and a dislike for disposable digital devices. This life-cycle extension is accompanied by a growing demand for more durable and repairable devices.

“Smartphone replacement cycles have increased from an average of 2.4 years in 2013 to 3.7 years in 2022,” Corrocher explains. “In the U.S., the average expected lifespan of consumer and company smartphones was 2.67 and 2.54 years in 2023, respectively, while in the U.K. nearly 30 percent of consumers surveyed use their smartphones for up to two years and 41 percent for up to four years.”

Another significant finding is that an increasing number of Italian consumers are considering the purchase of second-hand smartphones. This trend is supported by the improved quality of refurbished devices and the growing social acceptance of buying used electronics.

These changes reflect an evolution in consumption habits, driven not only by economic motivations, but also by a growing environmental awareness. Italian consumers are becoming more aware and critical of planned obsolescence, demanding greater transparency and sustainable solutions from manufacturers.

Toward a more sustainable future: solutions and EU policies

Faced with these challenges, the European Union has begun to introduce measures to address planned obsolescence, including:

  • Ecodesign Directive: aims to improve the environmental performance of products.
  • EU Ecolabel: voluntary labeling that promotes the reduction of waste and CO2 emissions.
  • Right to Repair Directive: calls for more affordable repair and longer life of durable goods.

A necessary change

Planned obsolescence keeps affecting the smartphone market in Italy, with significant economic, social and environmental implications. However, growing consumer awareness and evolving European policies are paving the way for a more sustainable future.

The future of smartphones depends on how manufacturers and consumers choose to address this challenge: either go on with a linear consumption model or adopt a circular, more sustainable and conscious approach.

Corrocher

NICOLETTA CORROCHER

Bocconi University
Department of Management and Technology