Gartner: Consumer spending on devices to grow 2pc in 2017

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Mobile phone consumer spending is on track to hit nearly £322 billion ($400 billion)

Spending on mobile phones and computing devices will increase two per cent to £484 billion ($600 billion) due to higher average selling prices (ASPs) in 2017.

The spending increase is according to analyst firm Gartner who also predict mobile phones will account for 67 per cent of the figure. Mobile phone consumer spending is on track to hit nearly £322 billion ($400 billion).

The greater availability of smartphones from Chinese manufacturers contributes by increasing the basic-phone ASP by 13.5 per cent in 2016.

Two main reasons were highlighted for higher prices for consumers. Component prices are continuing to rise into 2017. Secondly interests in higher quality phones and more expensive phones is increasingly overriding the desire for a bargain.

Shipment figures for mobile phones and computing devices (tablets, 2-in-1, low-end PCs) are expected to reach 2.3 billion units,  flat growth from 2016.

Less price-sensitive 

Gartner research vice president Annette Zimmermann said: “The increased ASP for mobile phones was driven by users across the board. They 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. 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.”

Gartner research director Ranjit Atwal added: “Across the world, the device market is becoming less price-sensitive. Consumers and businesses are seeking better products that suit their lifestyles, rather than just opting for the cheapest products.”

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