i3 - January/February 2020 - 102

Business

By Steve Koenig

M A R K E T B E AT

Technology Product
Lifecycles - Understanding
Consumer Expectations

ive and a half years is the average life expectancy
for most consumer technology products and devices,
consumers say. However, consumer expectations for
how long a technology product should last vary widely by
device and are influenced by several factors including the
technology itself, market dynamics and consumer use. But
beyond failure for any reason, the lifetime of a technology
product is really at the whim of the consumer.
So how long should a technology product or device last before it stops working
or consumers decide to stop using it?
CTA examined the answer to this question across 30 different technology
products and accessories in its recently
published 2019 Product Lifecycle consumer research study.
To begin with, we asked consumers
why they would stop using a tech
product - and their reasons are many.
Overwhelmingly, the most common
reason is because the product stopped
working or began malfunctioning.
Among emerging technologies, availability of a new or updated version also
influences decisions to stop using a
given device. This is also true among
mobile devices like smartphones and
smartwatches.
And in the case of some emerging
technologies, consumers may simply
no longer want the product. This can
stem from a shift in consumer behavior
or a change in technology where a standalone product (e.g., media streaming
device) becomes a feature of another
product (e.g., smart TV). Digital cameras
are another example of this dynamic, but
also where we see higher intentions not
to replace the product at all, suggesting
notions of obsolescence.
102

JANUARY/FEBRUARY 2020

PRODUCT LIFE EXPECTANCY

7.7 YEARS

Televisions have the longest
life expectancy among the
products surveyed.

5.2 YEARS
15% of current owners
say they will not
replace their device.

4.2

YEARS

3.8

YEARS

5.4 YEARS
71% of laptop owners
now plan to replace
their existing unit.

What's more, considering how technology has become part of personal
fashion and home decor, it's understandable a change in style can also influence
a consumer to stop using a tech product.
This is especially true among wearable
tech and smart home devices.

How Long is a Lifecycle?

Just as reasons vary for why a consumer
would stop using a technology product,
life expectancies also vary. The analysis
bears out a key theme, however. The
more mature and expensive a technology product is, the longer consumers
expect the device to last. Televisions
have the longest life expectancy among
the products surveyed, followed closely
by AV receivers.
In addition to longer life expectancy,
mature technology products also tend
to exhibit high replacement rates. For
example, 71% of laptop owners now
plan to replace their existing unit with
either a newer version of the same product or a different product. We also
observe the effects of convergence in
looking at products like tablets where
15% of current owners say they will not
replace their device.
Meanwhile, we see lower life expectancies (below the overall average of
5.5 years) among mobile devices and
accessories. Smartwatches, for example, are expected to last 3.8 years, with
smartphones only marginally higher
at 4.2 years.
Emerging technologies are another
arena where useful life expectations
fall below the overall average. At the
category level, smart home products
exhibit the lowest life expectancy
at 4.7 years. Within the category, smart
displays have the shortest life expectancy at 3.6 years, while smart thermostats have the longest life expectancy at
just under six years - which to some
may still seem short. For more perspective on product lifecycles, check out the
study at CTA.tech.
I T I S I N N O VAT I O N

http://CTA.tech/research http://CTA.tech/research

i3 - January/February 2020

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