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PC-free ecommerce expected by 2005

by John Geralds in Silicon Valley

06 Dec 2001

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By 2005, just over 10 per cent of US business-to-consumer (B2C) ecommerce will be done without a PC, according to a new study by analyst Gartner.

Ecommerce transactions, expected to total $22.9bn, will instead be made through mobile phones, televisions and other devices.

The study forecasts that mobile devices will be used for making time-sensitive purchases such as public transportation, concerts and movies, while interactive TV will be used most often in reaction to advertisements.

Gartner predicts that the PC will continue to be the primary device used by US customers, but stated that alternative devices will begin making inroads in ecommerce over the next few years.

Research analyst David Schehr suggested that multinational vendors and retailers should use Europe as a proving ground for mobile and interactive TV initiatives.

"Europe is more mobile and interactive TV-oriented and less PC-focused, so it provides better near-term testing opportunities for these systems," he explained.

Gartner analyst Michael Cruz said: "B2C ecommerce for products and services in the US is projected to reach $61.8bn in 2001, and grow to $227.7bn by 2005."

According to Cruz, $61.7bn of B2C ecommerce will be done through a PC this year and online sales purchased through a TV will total a mere $107m.

In 2005, $204.8bn worth of ecommerce will be done through a PC, $9.5bn through a mobile device and $13.4bn with a TV.

Gartner predicts that by 2005, 42 per cent of US consumers will use multiple platforms regularly. Since each ecommerce platform has different strengths and weaknesses, US consumers are likely to employ multiple devices, choosing and switching based on what works best.

Because of delays in the availability of internet-capable TV set-top boxes, interactive television will not begin to be widely used until 2005, according to Gartner.

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