American Hoarding of Smartphones Squeezes Economy: Fed Report Slams Productivity Loss from Device Delay

Post date: November 25, 2025 · Discovered: April 23, 2026 · 3 posts, 0 comments

The average American is now keeping smartphones for 29 months, a significant jump from the 22 months recorded back in 2016. This trend of extended device use is generating concern regarding broader economic drag.

While users noted the short-term savings from device longevity, the sharper arguments focused on macro consequences. A key data point cited from the Federal Reserve suggests that delaying equipment replacement causes an estimated productivity decline of one-third of a percent. Furthermore, the same report indicated that investment patterns account for about 55% of productivity gaps between advanced economies.

The weight of the data points to a growing economic friction. The community consensus centers on the paradox: individual savings from device hoarding may translate into measurable, measurable productivity losses at the corporate and national level.

Key Points

#1Average smartphone retention time has surged.

The baseline figure is 29 months, a marked increase from the 22 months recorded in 2016 (Source Threads General).

#2Device hoarding carries economic costs.

The practice may drain the economy long-term, especially at the corporate level (Source Threads General).

#3Productivity loss tied to delayed upgrades.

A Federal Reserve report quantified this loss at roughly one-third of a percent (MicroWave).

#4Investment patterns drive economic gaps.

The Fed indicated that investment patterns account for about 55% of productivity gaps between advanced economies (MicroWave).

Source Discussions (3)

This report was synthesized from the following Lemmy discussions, ranked by community score.

268
points
Americans are holding onto devices longer than ever and it’s costing the economy
[email protected]·161 comments·11/25/2025·by MicroWave·cnbc.com
154
points
Americans are holding onto devices longer than ever and it's costing the economy
[email protected]·125 comments·11/24/2025·by alyaza·cnbc.com
129
points
Americans are holding onto devices longer than ever and it's costing the economy
[email protected]·64 comments·11/24/2025·by Champoloo·cnbc.com