When Old Phones Cost Work: The Hidden Productivity Tax of Longer Device Lifecycles

Americans are keeping phones, tablets and laptops longer than ever. It’s a sensible choice for household budgets: delaying a costly upgrade frees cash for rent, groceries, childcare and investments. But beneath the sensible thrift lies a paradox for the workplace. The same decision that pads personal bank accounts and reduces e‑waste also slows the cadence of tech refreshes that businesses depend on — and that slowdown has measurable consequences for productivity, employee experience and the broader U.S. economy.

The new normal: device lifespans stretch

Not long ago, replacing a smartphone every two years was the default. Upgrades were regular and predictable; the newest hardware and software rolled through corporate fleets on a steady schedule. Today, replacement cycles have stretched. People hold phones until batteries fail, cameras become unusable or the latest app features no longer run smoothly. Turnover in the consumer market — the prime driver of new device volumes — has softened, and that change ripples through supply chains, services and the way workplaces operate.

Why consumers hold on

• Cost consciousness: Device prices have increased, and many households prioritize essentials over upgrades.
• Improved hardware longevity: Cameras, processors and displays simply last longer than they used to.
• Repair and trade-in options: Repair culture, insurance and refurbished markets make it easier to extend usable life.
• Saturation: For many users, incremental year‑over‑year gains are less compelling than they once were.

These are wins for consumers and for sustainability. Reducing e‑waste and the environmental footprint of constant churn matters. But for employers and the economy, the story is more complex.

The workplace paradox: thrift vs. throughput

Devices are not just personal items; they are tools of work. When those tools age, the impact is felt in subtle but persistent ways.

Slowdowns that add up

Older devices boot slower, handle multitasking more poorly, and take longer to open or render modern web apps. For a single worker, a few extra seconds or minutes per task may seem trivial. Multiply that across dozens, hundreds or thousands of employees performing dozens of tasks each day, and the lost time becomes a drain on productive hours.

Security and compatibility gaps

Device age is tied to software support. Operating systems and security updates eventually stop coming to older models, or the latest enterprise applications no longer receive full test coverage on legacy hardware. This increases the workload for IT: patching, workarounds, and dealing with exceptions sap resources that could be spent on improvements. It also raises real risk — older devices can be easier to compromise, which threatens business continuity and compliance.

Hidden IT and shadow work

When company-issued devices lag, employees improvise: they switch to personal phones, rely on consumer apps not vetted by IT, or use home devices with mismatched security controls. These workarounds can keep teams moving in the short term, but they build complexity and friction, and they obscure the line between personal and professional data management.

The human side: morale, hiring and retention

Technology is part of the employee experience. Slow or unreliable devices frustrate staff, erode the sense that their employer values their time, and can affect recruiting. Candidates compare their prospective tech environment to what they know at home and at competitors; a company that lags in tooling can lose talent or pay a premium to retain it.

How to measure the cost

Quantifying the impact of older devices means looking at operational metrics and translating them into time and dollars. Here is a conservative, illustrative method that HR and operations leaders can use as a starting point:

1. Identify the average additional time per worker per day attributable to device sluggishness (for example, 5–15 minutes).
2. Multiply that by the number of knowledge workers and by working days per year.
3. Convert lost hours into salary cost using average fully loaded labor rates.

Example: If 1,000 knowledge workers each lose 10 minutes per day to slow devices, that is nearly 173 lost workdays a year. At a conservative loaded cost of $50,000 per worker per year, the annual effective cost could reach the low hundreds of thousands for a single mid‑sized employer. Scale that across sectors and regions, and the aggregate becomes significant.

Beyond direct time loss, look at incident rates, helpdesk tickets, onboarding delays and the time IT spends managing exceptions. Those are real costs that compound over time and are often buried in operating budgets.

Wider economic ripple effects

Device turnover drives demand for hardware manufacturing, component suppliers, retail, logistics and software services. When consumers extend lifecycles, new‑purchase demand softens. For industries reliant on steady upgrade cycles, this alters investment plans, capacity and employment. Some firms pivot to services — subscriptions, repairs, remanufacturing — but the transition is uneven, and not every supplier can compensate for lower unit volumes with higher service revenue.

There is also an innovation effect. A slower refresh cycle means fewer devices in circulation that can adopt and validate new hardware features at scale, which can delay the business case for developers and delay broader adoption of advances that could later boost productivity.

Not all old devices are equal

A key nuance: keeping devices longer does not automatically equal lower productivity. The impact depends on job function, device role, and how a company manages its fleet.

• Frontline workers using point‑of‑sale or field devices may need more frequent refreshes to maintain service levels.
• Roles that hinge on complex software, large datasets or real‑time collaboration are more sensitive to hardware slowdowns.
• Conversely, some roles can tolerate longer cycles if software is optimized and expectations are managed.

Practical strategies for employers

Organizations can reconcile consumer thrift with operational needs by getting smarter about lifecycle management rather than relying on a one‑size‑fits‑all cadence. Practical steps:

• Segment devices by role: Create tiers of refresh priority (e.g., mission‑critical, standard, tolerant) and target investment where it yields the most productivity.
• Adopt device-as-a-service: Leasing or subscription models shift upfront costs and make scheduled refreshes predictable.
• Measure real impact: Track device‑related ticket volumes, app performance, and time lost. Use these metrics to build a business case for targeted upgrades.
• Invest in software optimization: Streamline enterprise apps to run nimbly on older hardware where possible.
• Encourage repair and refurb programs: When replacement is necessary, certified refurbishment can be cost‑effective and greener than new purchases.
• Offer thoughtful BYOD policies: Support secure personal device use in a way that protects data without forcing unnecessary purchases.
• Provide conditional allowances: Offer stipends for frontline staff or knowledge workers who require higher performance for their roles.

Balancing thrift and throughput

Holding devices longer is a rational response to price pressures and environmental concerns. The challenge for workplaces and the broader economy is to recognize that the benefits of extended lifecycles are not free. They carry a productivity tax that shows up in minutes per task, in helpdesk load, in slower innovation adoption and in the labor market.

The solution is not to force upgrades indiscriminately. It is to design smarter strategies that target investment to where it produces the biggest return — protecting employee time, maintaining security and enabling work to flow smoothly. Firms that get this right can deliver the financial and environmental benefits workers value, without paying the hidden costs of stagnation.

A pragmatic call to action

Employers, IT leaders and policymakers should approach device lifecycles with the same rigor applied to other critical capital assets. Map the true cost of aging devices, pilot targeted refresh programs, and track the productivity gains that follow. At the same time, support sustainable practices: certified refurbishment, repair networks, and programs that reduce e‑waste while preserving necessary capacity for growth.

We are entering a moment where personal thrift and institutional efficiency must be reconciled. That reconciliation is an opportunity: by investing where it matters most, organizations can turn a potential productivity drag into a competitive advantage — proving that a careful approach to technology can be both economically sensible and human‑centered.

Longer device lifespans can be a force for good — if workplaces accept the tradeoffs and act deliberately. The cost of doing nothing is measurable. The upside of acting is too.