7 Adverse Effects of Longer Cell Phone Ownership on the US Economy – New Data Reveals This!

Jakarta, Pintu News – The phenomenon of keeping old cell phones is now a habit that is hurting the United States economy. According to a recent report from Cryptopolitan (November 23, 2025), more and more US citizens are choosing not to replace their phones or tech devices regularly. While it may seem frugal on the surface, this habit has a serious impact on productivity and economic growth.

1. Average Cell Phone Ownership Rises to 29 Months

Based on data from Reviews.org, the average American now keeps a cell phone for 29 months, up from 22 months in 2016. This extended cycle has a direct impact on the decline in consumer demand.

This phenomenon can be seen in the decline in sales of new devices, which indirectly suppresses the growth of the technology and manufacturing sectors. The number of consumers extending the life of their gadgets has a systemic impact on the economy at a macro level.

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2. National Productivity Declines by Hundreds of Billions of Dollars

According to a Federal Reserve report cited by Cryptopolitan, every one-year delay in technology updates causes national productivity to fall by 0.33%.

When applied to the entire business sector, this decline equates to a loss of billions of dollars per year. Companies using older devices experience decreased work efficiency and increased maintenance costs.

3. Outdated Devices Become a Burden in the Workplace

Cassandra Cummings from Thomas Instrumentation in New Jersey mentions that older devices slow down the internet network because they do not support 1GB speeds. As a result, the entire system had to be downgraded to remain compatible.

Using tools that are irrelevant to today’s work needs creates operational bottlenecks and increases dependency on already inefficient systems. This stifles creativity and flexibility in the workplace.

4. Worker Morale and Efficiency Decline

Jason Kornweiss from Diversified stated that 24% of employees work overtime due to technology limitations, and 88% feel that innovation is hindered. This is an important indicator that the impact is not just technical, but also psychological.

According to Kornweiss, time is a worker’s most valuable asset. When obsolete devices hinder work, workload increases, while job satisfaction decreases.

5. MSME Sector Trapped in Maintenance Costs

Dr. Najiba Benabess from Neumann University emphasized that small and medium-sized enterprises allocate a lot of time to repairing old devices, resulting in compromised business efficiency.

In the long run, this erodes national competitiveness. The use of old devices that are perceived as cost-saving has a detrimental impact on the sustainability of small businesses that form the backbone of the local economy.

6. Repair and Resale Industry Still Neglected

Despite the increasing demand for device repair, the repair and resale industry is still under the radar. Steven Athwal from The Big Phone Store says that the support ecosystem for device repair is still minimal, especially in the US.

With minimal regulation and support, this industry has failed to develop optimally. In fact, this sector can be a medium-term solution to balance the technology consumption cycle.

7. Residents’ Habits are a Major Challenge

Many Americans like Heather Mitchell in Tucson are reluctant to buy a new phone due to cost and convenience. She’s still using a six-year-old Samsung Galaxy A71 and says there’s no need to replace it.

This aversion factor, according to analysts, is a major barrier to the accelerated adoption of new technologies. When millions of people choose to stick with old technology, the digital economy is held back.

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FAQ

What is the economic impact of US citizens’ use of old cell phones?
According to Cryptopolitan, the use of old devices leads to a 0.33% decrease in national productivity per year, which equates to billions of dollars in economic losses.

How long does the average American use a cell phone nowadays?
Data from Reviews.org shows that the average cell phone usage increases to 29 months by 2025, up from 22 months in 2016.

Why are companies reluctant to update their technology tools?
The main reason is cost. According to Cassandra Cummings, many small companies cannot afford the cost of device updates, even though the impact on efficiency is huge.

How do old devices affect employees?
Jason Kornweiss mentioned that 24% of employees have to work overtime due to device limitations, and 88% feel that work innovation is disrupted due to outdated technology.

Can the repair industry be a solution?
Yes, but according to Steven Athwal, the device repair and resale industry is still lacking regulatory and financial support, so it is not yet a strong solution in the United States.

Reference:

• Cryptopolitan. Longer phone ownership hurts economic demand – Americans won’t trade in like they used to. Accessed on November 24, 2025