The global shipments of total devices (PCs, tablets and mobile phones) are likely to decline 4.4 per cent this year to reach 1.7 billion units, a report showed on Tuesday.
PC shipments will continue to record the worst decline of all devices segments in 2023. PC shipments are estimated to decline 6.8 per cent in 2023, after a 16 per cent decline in 2022.
In 2022, the devices shipment market declined 11.9 per cent globally, according to Gartner.
“The depressed economic market will continue to dampen demand for devices throughout 2023. In fact, end-user spending on devices is projected to decline 5.1 per cent in 2023,” said Ranjit Atwal, senior director analyst at Gartner.
“We do not expect relief from inflation and the bottom of the recession to occur until the fourth quarter of 2023,” Atwal added.
By the end of 2023, Gartner expects more than 25% of business PCs will upgrade to Windows 11.
However, Windows 11 will not drive enough sales to reach the same volumes seen between 2020 and 2022.
The worldwide smartphone shipments may decline 4 per cent in 2023. Smartphone shipments are projected to total 1.230 billion units in 2023, down from 1.280 billion units in 2022.
“Consumers are holding onto their phones longer than expected, from six to 9 months, and moving away from fixed to flexible contracts in the absence of meaningful new technology,” said Atwal.
In addition, vendors are passing on inflationary component costs to users which is dampening demand further. End-user spending on mobile phones is projected to decline 3.8 per cent in 2023.