PC Shipment to see Flat Growth due to Price Rise; Gartner

Ranjit Atwal, research director, Gartner
Ranjit Atwal, research director, Gartner
6 years ago

Worldwide shipments of devices of PCs, tablets and mobile phones are on pace to record 0.9 percent growth to reach 2.28 billion units in 2018, according to Gartner. The PC and tablet market is estimated to decline 1.2 percent in 2018, while the mobile phone market is on pace to record an increase of 1.4 percent.

“The PC market is still hindered by the undersupply of the DRAM market for tall of 2018, due to the lack of new wafer capacity coming online. As a result, PC vendors will continue to increase their prices throughout 2018,” said Ranjit Atwal, research director at Gartner. “Larger screens and more graphic boards also mean rising costs, adding to the bill of hardware materials for businesses and household buyers.”

While the PC market is price-sensitive, Gartner is witnessing business demand migrating to high-end PCs such as ultramobile premium devices, where value is seen as higher. Gartner estimates shipments of ultramobile premium units to increase by 12 percent in 2018.

The next major shift in the PC market will be marked by the end of support for Windows 7 in January 2020. “It is becoming paramount for businesses to migrate to Windows 10 as soon as possible, and certainly by the end of 2019,” said Mr. Atwal.

While the global device market is affected by macro-economic factors and technology developments, it can also be influenced by the Chinese device market alone. “China accounts for over 20 percent of global spending on devices, so any changes occurring there can have a significant ripple effect globally,” said Mr. Atwal.

“The downward trend that China is experiencing is undoubtedly affecting the worldwide device market,” said Mr. Atwal. “China is an interesting country to watch this year. The continued roll-out of a Chinese version of Windows 10 in the second half of 2018 as well as Apple iPhone’s replacement cycle expected through 2019 will generate demand.”