Essentially all electronics have a limited lifetime. The manufacturer specifies conditions for use of the electronics – for power supplies, these are, for example, input voltage (and frequency of AC etc.), maximum output (load) current etc. and also generic parameters of the environment such as minimum and maximum temperature, humidity and so on.
The same applies to each component in the device.
Conditions causing damage
Mechanical wear and tear
Wires can be subject to pulling when the device is manipulated. They can also become broken by frequent or significant bending, mechanically loading them and so on. This is quite easy to notice on wires that are outside the device, but this also applies to wires and other connections inside the device.
Long time loading of the enclosure of the device can also cause components, especially the printed-circuit board to bend and eventually develop cracks.
Vibrations and mechanical shock can cause a lot of bending. This applies to everything: enclosure of the device, wires (even inside it), and importantly the components. Through-hole components such as coils, capacitors, …, especially these mounted on two or three “legs” are quite vulnerable to vibrations, unless they are properly mounted. When the device is vibrating on specific frequencies, you can see the components literally flapping.
To make components less vulnerable to vibrations, a blob of epoxide or a glue is used to cover the components and hold them fast on the board.
Traces on printed circuit boards can break by mechanical or thermal stress.
Thermal stress
Power supplies usually produce a significant amount of heat. Each heating and cooling cycle of the device causes the components of it to stretch a little bit and degrade the materials by bending.
Also heating the device by the environment (sunlight etc.) can cause damage to the device.
Electrolyte of electrolytic capacitors and many types of batteries has a limited range of working temperatures. The electrolyte can boil off when used at extreme temperatures, it can freeze and most importantly, it slowly evaporates even during normal use or storage of the device.
Too low temperatures can cause brittleness of many materials.
Air humidity can condense in the device when used or stored below the dew point.
Humidity and water
Electrical devices are susceptible to damage by water and air humidity. It can cause corrosion, among of other effects.
Chemical damage
Fumes of some chemicals (think of iron chloride) can be very damaging to electronics.
Chemicals are used in manufacturing the device, especially the printed-circuit board, can slowly deteriorate the materials used in it. Solder flux is well-known cause of damage of PCBs.
Electrical overloading
Operating the device out of specs, overvoltage, shorting the output etc. can shorten lifetime of the power supply.
Typical damage of individual components
Electrolytic capacitors
This kind of component is well-known for their tendency to degrade over time, even when the device is not in use. The capacitors are not perfectly sealed and the electrolyte can slowly evaporate. Also, they produce gas over time – you can see “bulged” capacitors in some devices. They degrade faster in hot environment (e.g. when the device is in use), but the degradation is inevitable.
Source of the image: https://commons.wikimedia.org/wiki/File:D865PERL_bulge_2.jpg
Other capacitors
Some other types of capacitors (e.g. ceramic) can be damaged by vibrations and mechanical stress. They can even develop a short circuit.
Printed circuit boards
Printed-circuit board traces are a very thin foils of metal. It can break by vibrations, mechanical shock etc.
If the manufacturer does not properly cover all surfaces susceptible to corrosion, the PCBs can corrode over time. Improperly cleaned soldering flux can cause corrosion to the board traces.
Air humidity and some chemicals can make some “worse” PCB materials to become conductive.
Inductors and transformers
These components are made by winding a length of wire around a core. Magnetic fields in the coil can cause vibration of the coil itself or nearby metal parts and it can help to damage the device by vibrations.