technical obsolescence

technical obsolescence definition - business

technical obsolescence

A decrease in value of a product or service caused by advances in technology. For example, older aircraft have become technically obsolete in part because they are not fuel efficient. This was not as important when oil was selling for $25 per barrel as when oil sells for $100 per barrel. Likewise, dry cleaning became a less valuable service because of the development of new fabrics. Compare functional obsolescence.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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