Device spend to grow in 2017

Research firm Gartner has predicted that global spend on devices will increase by 2 per cent in 2017 to $600 billion (£480 billion), with the total number of devices shipped in 2017 expected to reach 2.3 billion – a figure that remains flat from the previous year.

So what that means is that users are spending more on devices, but that is not necessarily reflected in the units sold. Gartner identifies this as being down to two key reasons Firstly, component price increases are continuing into 2017 which is resulting in more expensive products. Secondly, it says users’ interest in value and higher quality phones is outweighing the desire for lower prices. This seems to make sense given that spending on mobile phones will represent 67 per cent of the total spend. 

Worldwide End-User Spending by Device Type, 2016-2019 (Millions of Current U.S. Dollars)

Source: Gartner (April 2017)

"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."

As previously mentioned, spend on phones is set to make up 67 per cent ($400 million) of the total figure – an increase of 4.3 per cent. Elsewhere, PC and desktop sales will remain flat, with total units shipped this year expected to be 270 million, a decrease of 5 million from 2016.