Wiktionary
n. A policy of deliberately planning or designing a product with a limited useful life, so it will become obsolete or nonfunctional after a certain period.
Wikipedia
Planned obsolescence or built-in obsolescence in industrial design and economics is a policy of planning or designing a product with an artificially limited useful life, so it will become obsolete, that is, unfashionable or no longer functional after a certain period of time. The rationale behind the strategy is to generate long-term sales volume by reducing the time between repeat purchases (referred to as "shortening the replacement cycle").
Producers that pursue this strategy believe that the additional sales revenue it creates more than offsets the additional costs of research and development and opportunity costs of existing product line cannibalization. In a competitive industry, this is a risky strategy because when consumers catch on to this, they may decide to buy from competitors instead.
Planned obsolescence tends to work best when a producer has at least an oligopoly. Before introducing a planned obsolescence, the producer has to know that the consumer is at least somewhat likely to buy a replacement from them. In these cases of planned obsolescence, there is an information asymmetry between the producer – who knows how long the product was designed to last – and the consumer, who does not. When a market becomes more competitive, product lifespans tend to increase. For example, when Japanese vehicles with longer lifespans entered the American market in the 1960s and 1970s, American carmakers were forced to respond by building more durable products.
Usage examples of "planned obsolescence".
Furthermore, production by assembly line creates a fundamental need for planned obsolescence or else the assembly line, by its own efficiency, would fill the needs of everyone in the market and be forced to shut down.
These needs are not as simply described as the critics of planned obsolescence sometimes assume.
Any scientist or engineer who came up with some scheme for planned obsolescence, we'd toss in the slammer.
Some of its guts, we'll say, were designed with planned obsolescence in mind.
In a world of planned obsolescence, Vivienne took pleasure in getting long, full use out of everything that she bought, whether it was a toaster or an automobile.
For those few who passed, there awaited a reward, an afterlife not only experientially superior to life but free of life's planned obsolescence.
Even with planned obsolescence, it would last as long as he'd need it.