What is Foolsaurus?

It's a glossary of investing terms edited and maintained by our analysts, writers and YOU, our Foolish community.

Planned obsolescence

Planned obsolesence. Certain products can be produced in such quantities in modern plants that they would saturate the market forcing the plant to shutdown for extended periods. To avoid this problem, some products are designed to be look old or wear out encouraging the user to replace the product with new. Typical examples include clothing, shoes, automobiles, personal computers, microprocessors, dry cell batteries, white appliances, etc.

Expanded Definition

Fashion and styling are typical methods used to make some products look out of date. In computers the usual method is to add features that turn out to be "must haves." In other situations, products are designed for minimal service causing them to wear out and breakdown due to failure of a critical part.

Related Fool Articles

  • [link link title]

Related Terms

Recent Mentions on Fool.com