obsolescence means the process or the state of what becomes obsolete, outdated or out of use.
In economics, obsolescence is characterized by the reduction of the useful life of a given good caused by the emergence of a more modern model or by technological evolution.
Obsolescence is associated, for example, with the technological market, as new, more attractive, faster, more economical, more practical or more modern equipment constantly appear.
Obsolescence can occur in three ways: programmed, perceptual, or functional.
Scheduled (or planned) obsolescence
Scheduled obsolescence happens when there is a deliberate action by the manufacturing company that forces the customer to purchase a new model of the good. This is the case for household appliances or electronic equipment.
perceptual obsolescence
Perceptual obsolescence occurs when the producer launches a new, more attractive version of the product and the consumer is induced to buy the new version, even when the old model remains operational.
Functional (or technical) obsolescence
Functional obsolescence occurs when a product or service loses its usefulness because a more practical one has been developed to replace it; when it doesn't make sense to continue manufacturing due to a great evolution in other products; when it becomes more expensive to fix the old one than to acquire a new one.