Gartner Says Worldwide End-User Spending on Devices Will Grow 2 Per Cent in 2017, While Unit Shipments Remain Flat

Chinese Vendors' Upgrades Will Increase Basic-Phone ASPs by 4 Per Cent

Egham, UK, (PresseBox) - Users of PCs, ultramobiles and mobile phones are buying new devices at higher average selling prices (ASPs), resulting in growth in end-user spending in 2017. Gartner, Inc. estimates that end-user spending will increase by 2 per cent in 2017, to nearly $600 billion in current US dollars. Spending on mobile phones will represent 67 per cent of that figure (see Table 1).

We estimate that ASPs for computing devices and mobile phones will increase by 2 per cent in 2017 in current US dollars, for two main reasons. First, component price increases are continuing into 2017 (mainly for PCs but also to some extent for phones), which is resulting in more expensive products. Second, users' interest in value and higher quality phones is increasingly overriding their desire for low prices.

"Across the world, the device market is becoming less price-sensitive," said Ranjit Atwal, research director at Gartner. "Consumers and businesses are seeking better products that suit their lifestyles, rather than just opting for the cheapest products."

End-User Spending on Mobile Phones Is Growing

End-user spending on mobile phones is on track to reach nearly $400 billion in 2017, an increase of 4.3 per cent from 2016. "The increased ASP for mobile phones was driven by users across the board," said Annette Zimmermann, research vice president at Gartner. "They are replacing their basic phones with better-quality and more feature-rich basic phones, due to improved product portfolios from rising vendors such as Huawei and Oppo. 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."

Greater availability of basic phones from Chinese vendors such as Oppo, BBK and Huawei increased the basic-phone ASP by 13.5 per cent in 2016. It is on track to rise by 4 per cent in 2017. "We expect users to continue to look for higher-value phones this year, which will lead to another rise in ASP," added Mrs Zimmermann." "The high-end smartphone ASP will continue to soar, given the announcement of the Samsung Galaxy 8 and the release of the tenth-anniversary Apple iPhone later this year. We expect the premium-phone ASP to increase by 4 per cent in North America in 2017."

Shipments of PCs, ultramobiles and mobile phones are projected to total 2.3 billion units in 2017 — achieving flat growth from 2016 (see Table 2).

Desk-Based and Notebook PC ASP Will Increase by 1.4 Per Cent in 2017

The PC exodus has reached its peak, but near-term growth of PC sales will be hampered by increasing component costs. Component costs, especially for DRAM, have doubled since June 2016. "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 Mr Atwal.

More detailed analysis is available to clients in the reports "Forecast: PCs, Ultramobiles and Mobile Phones, Worldwide, 2015-2021, 1Q17 Update" and "Gartner Market Databook 1Q17 Update."

Gartner UK Ltd

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior information technology (IT) leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to supply chain professionals, digital marketing professionals and technology investors, Gartner is the valuable partner to clients in more than 11,000 distinct enterprises. Gartner works with clients to research, analyze and interpret the business of IT within the context of their individual roles. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has almost 9,000 associates, including 1,900 research analysts and consultants, operating in more than 90 countries. For more information, visit www.gartner.com.

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