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Home > QFINANCE Dictionary > Definition of obsolescence

Definition of

obsolescence

  • 1. Finance

    loss through becoming out of date the loss of value of a fixed asset due to advances in technology or changes in market conditions

  • 2. Marketing

    becoming out of date the decline of products in a market due to the introduction of better competitor products or rapid technology developments. Obsolescence of products can be a planned process, controlled by introducing deliberate minor cosmetic changes to a product every few years to encourage new purchases. It can also be unplanned, however, and in some sectors the pace of technological change is so rapid that the rate of obsolescence is high Obsolescence is part of the product life cycle, and if a product cannot be turned around, it may lead to product abandonment.

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Definitions of ’obsolescence’ and meaning of ’obsolescence’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’obsolescence’ and other financial terms with our online QFINANCE Financial Dictionary.

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