Consumer and business spending on PCs, ultramobiles and smartphones will rise by two per cent in 2017, according to Gartner. The market will be worth $600bn, suggests the analyst group.
It believes that average selling prices for computing devices will increase in 2017 due to a combination of factors. These include rising component costs, user demand for higher quality over lower priced products, and the upgrade cycle in developing countries from feature phones to smartphones.
Spending on mobile and smartphones represents 67 per cent of the $600bn figure, with end-user spending on mobiles on track to reach almost $400bn in 2017 - an increase of 4.3 per cent from 2016.
"[End users] are replacing their basic phones with better-quality and more feature-rich basic phones, due to improved product portfolios from rising vendors, such as Huawei and Oppo," said Annette Zimmermann, research vice president at Gartner.
"In emerging markets, the majority of users are upgrading to better basic phones as the leap to premium phones remains out of reach for most," she added.
The company also believes that the high-end smartphone average selling price will continue to rise following the release of the Samsung Galaxy 8 and the hype that will no doubt attend the launch of the tenth-anniversary Apple iPhone.
"We expect the premium-phone average selling price to increase by four per cent in North America in 2017," said Zimmerman.
Meanwhile, sales of PCs, notebooks and desktops remain flat with total units shipped this year expected to be 205 million, a decrease of 15 million from last year.
The average-selling prices of those devices will increase by 1.4 per cent in 2017 because of increasing component costs, particularly for DRAM.
"As a result, PC providers will increase the prices of PCs towards the end of the year. We expect the overall average selling price for PCs to increase by 1.4 per cent in current US dollars," said Ranjit Atwal, research director at Gartner.
Gartner expects premium ultramobile devices, which include Intel x86 products running Windows 10 and the Apple MacBook Air, to ship 10 million more units in 2017 than 2016 - from 50 million to 60 million.
However, other ultramobiles, such as the Apple iPad, iPad mini, Samsung Galaxy Tab S2, Amazon Fire HD, Lenovo Yoga Tab 3 and Acer Iconia One, are expected to be pinched, with shipments down eight million units, from 169 million in 2016 to 161 million in 2017.
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