The Problem of Stuff

Despite the promise of dematerialization implied by the digital revolution, we seem to be drowning in stuff, potentially impacting demand, and shaping tolerances for new innovations due to acquisition fatigue.

An image of various digital equipment such as a laptop sleeve, memory cards, camera lenses and ipod.

Purses, pockets, backpacks and countertops are filling with more and more gadgetry, leading to piles of unused or “retired” devices and accessories in the average home. Image: Flickr/Stevelyon

With household ownership of personal technology at an all-time high in many developed countries, a trend toward recognizing and rationalizing this glut of electronics, non-interoperable devices, accessories, and separate “ecosystems” has emerged. Under the various umbrellas of lifestyle simplification, burn-out, tech overload, “deleveraging” and “going off-the-grid,” consumers are beginning to ask questions of themselves and industry alike about how much technology, information, media and accoutrements are necessary.

Signals:

US data from the Consumer Electronics Association showed a significant jump in personal technology acquisition in the midst of a recession, with spending climbing over 10% year-on-year, and a jump from an average of 23 to 25 individual devices in each household. In Canada, spending on technology services and some electronics was also up, reflecting greater reliance on mobile phones and Internet access, according to Statcan.
Landline and cable replacement have become hot topics, with the number of households dropping landlines for mobiles and cable for Internet access to TV programs rising. For many younger consumers with tight budgets, this reflects a desire to spend less and make better use of household space, as well as accommodating their more mobile habits. Some 12% of Canadians have dropped landlines, but two-thirds of those still with landlines told IDC they were considering dropping them as well.
Rapid update cycles are encouraging consumers to “trade up” in shorter time increments to keep the pipelines of product moving. Apple, which wasn’t even in the mobile phone or slate computing business before three years ago, has now released four iterations of its popular iPhone product in this timeframe, and now sees around 60% of its global revenues from these products only recently introduced, according to some analysts. As one of the few markets which has seen growth in the recession, manufacturers and related businesses are looking to continued consumer purchasing of their goods for an economic boost.

Implications:

Consumer may slow their rate of acquisition of new products and services as they reach economic, psychological and spatial limits to manage the rising number of devices.
Consolidations into convergent devices and services are likely to increase. Products such as the iPad, which can function as a video player, gaming device, remote control etc., may become more popular as consumers seek to cut down while not cutting out.

Countertrends:

Continued introduction of single-function devices, such as e-readers or GPS devices, and introduction of technologies into new areas, such as vehicles, health care, education and other areas may drive uptake of even more technology into the household.

Extrapolations:

Manufacturers and developers alike may have to turn more toward “upcycling” technology, allowing consumers to upgrade without acquiring new items, mainly through updates in software and capabilities. This may also be a route to adding new functions, as we have seen with recent smartphone models having completely new services enabled with a new purchase.