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Device spend will rise 2% to $600bn in 2017, say techno-seers

Chinese vendors' upgrades driving costs

By Kat Hall, 6 Apr 2017

Techno-seers Gartner have once again peered into the cosmic spreadsheet and found that global device spend will increase by 2 per cent this year to $600bn (£480bn) in its latest tech spend divination ritual.

The total number of devices shipped in 2017 is expected to reach 2.3 billion, a slight increase on the previous year.

Users of PCs, ultra-mobiles and mobile phones are buying consumer tech at higher average selling prices, resulting in growth in end-user spending in 2017, it said.

Mobe spend is on track to constitute 67 per cent ($400m) of that figure – an increase of 4.3 per cent on the previous year – mainly as folk are replacing their basic phones with better-quality and more feature-rich basic phones.

Annette Zimmermann, research vice president at Gartner, said improved product portfolios from rising vendors such as Huawei and Oppo are driving upgrades. "In emerging markets, the majority of users are upgrading to better basic phones as the leap to premium phones remains out of reach for most."

Meanwhile, PC and desktop sales remain flat, with total units shipped this year expected to be 270 million, a decrease of 5 million from 2016.

But near-term growth will be hampered by increasing component costs. "As a result, PC providers will increase the prices of PCs toward the end of the year. We expect the overall ASP for PCs to increase by 1.4 per cent in current US dollars," said Ranjit Atwal, research director at Gartner.

"Across the world, the device market is becoming less price-sensitive. Consumers and businesses are seeking better products that suit their lifestyles, rather than just opting for the cheapest products." ®

The Register - Independent news and views for the tech sector. Part of Situation Publishing