Worldwide computers, smartphones shipments will decline
The market is forecast to return to growth in 2018 with a 1.6 percent increase in shipments.
PC shipments are on pace to drop 3 percent in 2017, but the rate of decline is slower than in recent years, alleviated by Windows 10 replacement purchasing.
Prices for components such as DRAM memory and SSD hard drives continue to rise, creating headwinds for the global PC market and — to a lesser extent — the smartphone market.
The impact of component pricing on PCs is being reduced for buyers as producers absorb some of the cost into their margins — fearing the alternative of a reduction of their share of a competitive market.
Overall smartphone shipments will grow 5 percent in 2017, reaching nearly 1.6 billion units.
End-user spending continues to shift from low-cost "utility" phones toward higher priced "basic" and "premium" smartphones.
The smartphone market is now more dependent on new devices that offer something different, as users are extending their purchasing cycles and need to be enticed to make a replacement.
The total installed base for these devices is currently around 7 billion units, so vendors are constantly looking at ways to add new capabilities that can give their products an edge in the market.
Many new technologies — such as artificial intelligence (AI) and virtual personal assistants (VPAs) — will grow in adoption throughout the forecast period, yet it is difficult to see any revolutionary impact in early iterations. ■