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Worldwide IT spending set to decline - PC Retail

Worldwide IT spending set to decline

Smartphones see growth thanks to Apple devices
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Worldwide IT spending is on pace to reach a total of $3.5 trillion (around £2 trillion) in 2015, a decline of 5.5 per cent from 2015.

According to analyst Gartner, the decline has been due to the rising US dollar, but the market is expected to grow by 2.5 per cent.

Communications services will continue to be the largest IT spending segment in 2015, with spending reaching almost $1.5 trillion (around £950 billion).

However, Gartner has revealed that price erosion and competitive threats are preventing revenue growth in proportion to increasing use within most national markets.

John-David Lovelock, research VP at Gartner, said: “We want to stress that this is not a market crash. Such are the illusions that large swings in the value of the US dollar versus other currencies can create.

“However, there are secondary effects to the rising US dollar. Vendors have to raise prices to protect costs and margins of their products, organisations and consumers will have to make new purchase decisions in light of the new prices.”

In the device market, mobile phones are leading the way thanks to a growth in Apple phones, while the expected 10 per cent increase in average PC pricing is going ahead.

In addition, enterprise budgets for data centre systems are expected to remain stable. Although, enterprise software spending is forecast to decline by 1.2 per cent in 2015.

According to Gartner, IT services spending in 2015 is also projected to decline by 4.3 per cent.

Lovelock added: "IT activity is stronger than the growth in spending indicates. Price declines in major markets like communications and IT services, and switching to 'as a service' delivery, mask the increase in activity.”

Image source: Shutterstock

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