Americans Delay Phone Upgrades, Hitting Spending and Productivity

US consumers now keep smartphones 29 months on average, up from 22 months in 2016. Slowed phone upgrades are dragging down consumer spending and economic demand. Businesses also delay tech refreshes, causing network bottlenecks and falling workplace performance. The Federal Reserve reports a 0.3% drop in productivity for each extra year companies hold old hardware. Extended phone upgrades delay cycles increase maintenance expenses. If Europe matched US corporate reinvestment since 2000, the UK-U.S. productivity gap would shrink 29%, France’s 35%, Germany’s 101%. Small firms in New Jersey report outdated devices throttling 1GB networks. At Diversified, 24% of staff work overtime due to legacy tech and 88% say it stifles innovation. Repair and resale channels remain underfunded. Experts warn that extended upgrade cycles sap national competitiveness and add hidden costs from repair and lost labor hours.