Product price rises will cause consumers to spend less, reckons Gartner

Money spent on computing devices to drop 7.2% in 2015

The global computing devices market (including PCs and ultramobiles) is on pace to reach $226 billion in terms of consumer spend in 2015, a 7.2 per cent decline.

The drop in PC purchases is mainly due to expected price increases in the coming year, which will be due to local currency deprecation against the dollar, reports Gartner.

However, worldwide combined shipments of devices (PCs, tablets, ultramobiles and mobile phones) is to increase by 2.8 per cent to reach 2.5 billion units in 2015.

"The fall in PC purchases is primarily due to expected price increases by vendors in Europe and other regions, which is forced by local currency depreciation against the dollar," said Ranjit Atwal, research director at Gartner.

"The currency squeeze is forcing PC vendors to increase their prices in order to remain profitable and, as result, it is suppressing purchases. We expect businesses will delay purchases of new PCs, and consumers will delay or ‘de-feature’ their purchases. However, this reduction in purchasing is not a downturn, it is a reshaping of the market driven by currency."

The mobile phone market, however, is set to grow 3.5 per cent this year to 1.9 billion units, due to the increasing amount of cheaper devices. A wider range of affordable devices will encourage consumers to purchase vendors products, meaning the need to increase prices is significantly lessened.

The total amount of mobile phones shipped this year is looking to hit almost two million, compared to the PC market, which is only looking at around 306,000 devices shipped (down from 313,817 in 2014).

Roberta Cozza, research director at Gartner, said: “Consumers will continue to prioritise spending on phones over PCs and tablet in 2015.

“Following rapid growth, the current mature consumer installed base for tablets is comparable to that of notebooks. Not only is the tablet segment nearing saturation in mature markets, but the influx of hybrids and phablets will compete with tablets in emerging markets.”

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