TECHNOLOGICAL OBSOLESCENCE 

Technological obsolescence is when a product is no longer needed or wanted although the item still may be in working order. Technological obsolescence generally occurs when a new product has been created in replace of an older version. A prime example of this is smart phones. Each year many different models of smartphones are created thus creating the cycle of technological obsolescence.

The rationale behind the strategy is to generate long-term sales volume by reducing the time between repeat purchases (referred to as "shortening the replacement cycle"). Planned obsolescence tends to work greatest when the producer has oligopoly, which is a state of limited competition, in which a market is shared by a small number of producers or sellers.

Introducing a planned obsolescence, the producer of the product/item/service has to be sure the consumers will continue to buy a ‘replacement’ item/service from them. In such cases of planned obsolescence, there is an imbalance of information shared between the consumer and producer. The producer is aware how long the product is designed to last, but the consumer is not aware of this.