Global PC Market Not Yet Dead, Says Gartner

by CXOtoday News Desk    Jul 08, 2014

pcmarket

The PC market is not yet dead as many had expected at the rate in which was declining in recent quarter.  In fact, a Gartner report predicts that the global PC market is likely to show slightly better growth in the remaining part of this year, and it attributes the growth growth to replacement of older devices in companies and upgrades from Windows XP.

According to a report released by the research firm, the worldwide combined shipments of devices (PCs, tablets, ultramobiles, or portable devices that function as a PC, and mobile phones) will reach 2.4 billion units in 2014, a 4.2% increase from 2013, where it witnessed its worst ever slump so far.

Ranjit Atwal, research director at Gartner, predicts that 2014 will be marked by a relative revival of the global PC market, comprising desk-based, notebook and premium ultramobiles. Thus, while this market declined by 9.5% in 2013, it is on pace to contract only 2.9% in 2014.

Atwal believes this year, nearly 60 million professional PC replacements in mature markets. However, he said that the traditional PC market (desk-based computers and notebooks) will follow the same downward trend and is on pace to contract 6.7% in 2014 and 5.3% in 2015.

Gartner further estimates that sales of tablets will see a relative slowdown in 2014 to reach 256 million units, an increase of 23.9% from 2013. Lower demand from users for tablets with smaller screens in mature markets, and the shift towards phablets, or phone tablets, in Southeast Asia are slowing global tablet penetration.

Read: PC Shipment In India Dip Over 25% In Q1: IDC

 “The next wave of adoption will be driven by lower price points rather than superior functionality,” he says. Likewise, sales of mobile phones are expected to reach 1.9 billion units in 2014, a 3.1% increase from 2013. Sales of smartphones, which exceeded those of other category of phones in 2013, will continue to do well. Gartner estimates smartphone sales will represent 88% of global mobile phone sales by 2018—up from 66% in 2014.

In the operating system (OS) market, Android and iOS are driving the growth with a 30% and 15% increase in 2014, respectively. Annette Zimmermann, research director at Gartner said, “Windows phones will exhibit strong growth from a low base in 2014, and are projected to reach a 10% market share by 2018—up from 4% in 2014. He expects the announcement of the new Apple iPhone 6 will attract pent-up demand for users who want a larger screen.