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Worldwide end-user spending on devices will grow 2 per cent in 2017, says Gartner

April 06, 2017

Gartner estimates that end-user spending will increase by 2 per cent in 2017, to nearly $600 billion. Of this, 67 per cent spending will be dedicated to mobile phones.

End-user spending on mobile phones is on track to reach nearly $400 billion in 2017, an increase of 4.3 percent from 2016. "The increased average selling price (ASP) for mobile phones was driven by users across the board," said Annette Zimmermann, research vice president at Gartner. "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."

Greater availability of basic phones from Chinese vendors such as Oppo, BBK and Huawei increased the basic-phone ASP by 13.5 percent in 2016. It is on track to rise by 4 percent in 2017. "We expect users to continue to look for higher-value phones this year, which will lead to another rise in ASP," added Zimmermann." "The high-end smartphone ASP will continue to soar, given the announcement of the Samsung Galaxy 8 and the release of the tenth-anniversary Apple iPhone later this year. We expect the premium-phone ASP to increase by 4 percent in North America in 2017."

 
 

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