Power saving mode means that your phone does less things that use power. The main thing it will do is slow down its processor, this means it will be slower to do anything, like loading a web page, playing a game, or get laggy when scrolling twitter.
It may also decrease the power at which it transmits. This will have the effect of decreasing the range and speed of WiFi and bluetooth.
So depending on how you want to use your device, power saving may being something that you always want, or maybe something you only have on occasionally.
A lot of power saving modes will limit features or processing power.
Depending on the device or use case, this may be detrimental to the users needs.
My laptop has a great power saving modes, but it’s useless with it on its max power saving mode.
My phone has an ok power saving that is acceptable to work with and I leave it on most of the time and never notice the difference.
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