But of course we all know that the big manufacturers don’t do this not because they can’t but because they don’t want to. Planned obsolescence is still very much the name of the game, despite all the bullshit they spout about sustainability.
But of course we all know that the big manufacturers don’t do this not because they can’t but because they don’t want to. Planned obsolescence is still very much the name of the game, despite all the bullshit they spout about sustainability.
What I don’t get is how no company seems to have worked out a legitimately good service and maintenance model for tech products. Fairphone hasn’t invented the wheel here. They’re going to make money on maintenance, parts and repair.
I would think there would be lowered costs involved in not having to push out a new product every 6 months and market it to customers who just bought something less than a year ago.
The business models of the current tech giants are very much based on planned obsolescence. Selling you a gadget for $ 1000 every two years will always be more profitable than selling you one very five years and doing service in the meantime.
The costs (overhead) are too high. They make more by simply manufacturing and selling.
Otherwise they’d be doing it.
I’m wondering about that. I’ve worked with several manufacturers, and their most profitable segment is parts. If you ever want to get the highest annual bonus, work for the parts devision.
Manufacturers of what? Selling and replacing car parts is a much different proposition than trying to replace semiconductors inside an earbud.
If the thing you’re selling costs $100,000, a separate parts stream makes sense, because the skilled labor that goes into replacing parts in a used device is worth the cost, compared to throwing it all away and starting with the new thing.
If the thing costs $100 and skilled worker time is at $50/hour, there’s just not much room for repairs to be cost effective, and repairs then become more of a reflection of one’s internal values around reducing waste or tinkering for fun than an economically feasible activity.
Anything that’s repairable is by component (main board, sound card, battery, camera, case, etc.). It was nice when we could swap batteries in cellphones. I have a Samsung S24 Ultra that came with a promise of 7 years of updates but the battery will degrade well before that and will cost $200-300 to pay a repair shop to replace because of the need of specialized tools. With my old Samsung Note 1, I could get a new battery for $20.
What? Why would the battery replacement cost $200-300? That seems a bit out there; authorised Apple resellers here replaces iPhone batteries for $80, that’s work and battery. That’s digestible at least, but still unreasonable in my opinion. I’d prefer to return to the days of feature phones where you could slip off the back and just slot in a new battery you picked up at the local electric parts store for $15-30.
But not for overall profit
Yes, for total corporate contribution margin.
It’s like they completely forgot that car dealerships make most of their money on maintenance and repair of vehicles that were sold.
Long term service is where the real money is.