Replacement cycle

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Replacement cycle

The frequency with which an asset is replaced by an equivalent asset.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Replacement Cycle

A period of time between the purchase of an asset and its replacement with an equivalent asset. The replacement may be the result of the end of the asset's absolute physical life or its obsolescence or some other reason. It is especially important in the information technology industry in which improvements occur with (sometimes variable) frequency. See also: Depreciation.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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Slowing innovation in flagship smartphones and rising prices continued to extend replacement cycles. The two countries that sell the most smartphones, namely the US and China, saw sales decline by 15.8% and 3.2%, respectively, in the first quarter of 2019.
notes that besides iPhone replacement cycles, he considers the second biggest controversy around Apple's stock to be the long-term sustainability of growth in Services.
Observations showed that Bonnie's secondary eyewall formation was similar to other observed eyewall replacement cycles, as it went through the development, strengthening, and dominance of a secondary eyewall while a primary eyewall decayed.
C After 2019 or 2020, the prices may remain stable as lack of innovations is lengthening the replacement cycles of smartphones.C Arshad said that most of the top brands used to launch one premium model every year but now they are launching two or three models with different price points.C "People are willing to buy a phone if it is reasonable and they are also ready to go for older models as the prices will be reasonable," he said.C
High device penetration rates, strong demand for the latest devices an d short replacement cycles make the US the most market lucrative for vendors - but h igh penetration also results in diminished growth opportunities in some of the key markets such as tablets and smartphones, particularly when compared with emerging markets.
ABI Research attributes the general decline over the past two years to two culprits: decreased demand for branded tablets in advanced market economies due to saturation, slow replacement cycles, greater influence of business purchases, and substitution; and lower sales in China and other Asian markets for white box tablets due to shifts to branded tablets, as well as reliance on smartphones and phablets.
Backed by a five-year warranty, the long 50,000-hour lifespan of the Helen Lamp eliminates a minimum of five CFL lamp replacement cycles, virtually eliminating routine maintenance costs.
The shift towards daily disposable lenses is expected to see a reduction in volume sales of contact lenses as they are generally expensive and more people would be expected to shift back to spectacle lenses which are generally cheaper, particularly when considering that they have longer replacement cycles.
Annette Zimmermann, principal research analyst at Gartner said that while the lack of compelling hardware innovation marginally extended replacement cycles in 2013, they have witnessed an upgrade path in the emerging markets.
The B2B segment will continue to fuel sales for PCs due to replacement cycles becoming overdue for most of the corporate sector.

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