Americans are holding onto devices longer than ever and it's costing economy

Many Americans are holding onto their aging devices longer than ever, and this trend is raising concerns about its impact on the economy. Take Heather Mitchell, a 69-year-old retiree from Tucson, Arizona. She happily uses her six-year-old Samsung Galaxy A71, despite its shortcomings. "It's hanging in there surprisingly well for a jalopy," Mitchell shared. "I love Samsung phones, but I can't afford a new one right now. A new phone would be a luxury." A recent survey by Reviews.org revealed that the average American now keeps their smartphone for nearly 29 months, an increase from 22 months in 2016. While this might seem financially prudent in the short term, experts warn that the long-term effects could be detrimental to the economy, particularly when both individuals and corporations hold onto outdated technology. Research from the Federal Reserve indicates that every additional year companies delay upgrading their equipment results in a productivity decline of about one-third of a percent. This productivity gap is largely attributed to insufficient investment patterns, which account for approximately 55% of the disparity between advanced economies. Fortunately, U.S. businesses tend to reinvest in replacing old equipment more rapidly than their European counterparts. If European productivity had matched U.S. investment patterns since 2000, the productivity gap with the U.S. could have been significantly narrowed. Experts like Cassandra Cummings, CEO of Thomas Instrumentation, emphasize the inefficiencies of clinging to outdated technology. She noted, "Think about how much internet speeds have changed in the past decade. In the 2010s, 100MB speeds were considered high speed. Just ten years later, we’re operating at 1GB speeds, which is roughly ten times faster." Older devices struggle to keep up with these advancements, and as a result, the entire infrastructure must remain backward compatible, which can slow down overall network performance. Cummings advocates for designs that allow for repairability and modular upgrades, so individuals and businesses can transition without the burden of constant full replacements. Steven Athwal, CEO of The Big Phone Store in the UK, argues that the real issue isn’t the longevity of devices but the attempt to run modern tasks on outdated hardware. He believes that if governments and tech companies supported refurbishment properly, aging devices could contribute to a sustainable circular economy. Despite these challenges, some companies have found ways to encourage consumers to upgrade. For example, Apple recently celebrated the launch of the iPhone 17, and industry experts suggest that rising prices and sustainability concerns are key factors affecting device longevity. Najiba Benabess, dean of the business school at Neumann University, points out that while keeping devices longer may seem responsible, it often leads to a gradual erosion of economic dynamism and competitiveness. Many employees find themselves hampered by outdated technology, leading to substantial time lost in the workplace. Research conducted by Diversified highlighted that 24% of employees work overtime due to technology issues, with 88% stating that inadequate tech stifles innovation. Despite awareness of these issues, many workers resist upgrading due to the comfort of familiarity with their old devices. As technology continues to advance at a rapid pace, individuals like Heather Mitchell remain reluctant to part with their old devices. "I tend to hang onto my phone until I have no choice in the matter. In 26 years, this is only my fifth phone," she remarked, reflecting a sentiment shared by many in today's tech landscape.