Spending on PCs, mobile phones to hit $600 bn this year: Gartner

Global spending on end-user devices is expected to grow from $587.2 bn in 2016 to $599.13 bn in 2017

Consumer spending on devices like mobile phones and PCs is expected to grow two per cent to about $600 billion this year as they opt for new gadgets at higher average selling prices (ASPs), research firm Gartner on Thursday said.

The global spending on these end-user devices is expected to grow from $587.2 billion in 2016 to $599.13 billion in 2017 and further rise to $627.16 billion in 2019, Gartner said in a report.

However, shipments of PCs, ultramobiles and mobile phones are projected to be flat this year at 2.3 billion units compared to 2016.

Gartner said the ASPs for computing devices and mobile phones are expected to increase by two per cent this year in current US dollars for two 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," it said.

Also, users' interest in value and higher quality phones is increasingly overriding their desire for low prices, it added.

"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," Gartner Research Director Ranjit Atwal said.

The mobile phones category, representing 67 per cent of the total spend, is expected to reach nearly $400 billion in 2017. This is an increase of 4.3 per cent from 2016.

Spending on PCs (desktops and laptops) is expected to grow to $163.35 billion this year, while that on ultramobiles is forecast to be at $36.28 billion.

In terms of shipment, 265 million PCs, 161 million ultramobiles and 1.91 billion mobile phones are expected to be shipped this year.