Smart device shipments will fall in 2017

Global shipments of smart devices including PCs and smartphones are set for a surprising decline this year, according to new Gartner figures.

Shipments will hit 2.3 billion this year, representing a 0.3 percent decline compared to the year before, the analyst firm said, before returning to growth next year.

According to the report, the devices market is steady for the first time in many years.

"Overall, the shipment growth of the device market is steady for the first time in many years," said Ranjit Atwal, research director at Gartner. "PC shipments are slightly lower while phone shipments are slightly higher -- leading to a slight downward revision in shipments from the previous forecast."

Gartner forecasts a 1.6 percent increase in shipments in 2018.

PC shipments will fall three percent this year, but this actually represents a slowdown in the decline. Gartner believes this is fueled mostly by consumers purchasing Windows 10. DRAM and SSD drives prices continue to rise "creating headwinds for the global PC market."

The effects of the rise in components pricing are being reduced by producers as they soak up some of the costs into their margins. Gartner believes this is happening because producers fear "the alternative of a reduction of their share of a competitive market."

"PC buyers continue to put quality and functionality ahead of price," said Mr. Atwal. "Many organizations are coming to the end of their evaluation periods for Windows 10, and are now increasing the speed at which they adopt new PCs as they see the clear benefits of better security and newer hardware."

Gartner’s full report can be found on this link.

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