Worldwide device shipments to decline 3.7% in 2019: Gartner

Share of 5G-capable phones to increase to 56% by 2023

Consumers are holding onto their phones longer, given the limited attraction of new technology, Atwal observed.
Consumers are holding onto their phones longer, given the limited attraction of new technology, Atwal observed.

Worldwide shipments of devices — PCs, tablets and mobile phones — will decline 3.7% in 2019, according to the latest forecast from Gartner.

Gartner estimates there are more than 5 billion mobile phones used around the world. After years of growth, the worldwide smartphone market has reached a tipping point. Sales of smartphones will decline by 3.2% in 2019, which would be the worst decline the category has seen.

“This is due to consumers holding onto their phones longer, given the limited attraction of new technology,” said Ranjit Atwal, senior research director at Gartner.

Related Articles

The lifetimes of premium phones — for example, Android and iOS phones — continue to extend through 2019. Their quality and technology features have improved significantly and have reached a level today where users see high value in their device beyond a two-year time frame.

Consumers have reached a threshold for new technology and applications: “Unless the devices provide significant new utility, efficiency or experiences, users do not necessarily want to upgrade their phones,” said Atwal.

5G phones

The share of 5G-capable phones will increase from 10% in 2020 to 56% by 2023.

“The major players in the mobile phone market will look for 5G connectivity technology to boost replacements of existing 4G phones,” said Atwal. “Still, less than half of communications service providers (CSPs) globally will have launched a commercial 5G network in the next five years.

5G will impact more than phones. The recent Gartner IoT forecast showed that the 5G endpoint installed base will grow 14-fold between 2020 and 2023, from 3.5 million units to 48.6 million units. By 2028, the installed base will reach 324.1 million units, although 5G will make up only 2.1% of the overall Internet of Things (IoT) endpoints.

“The inclusion of 5G technology may even be incorporated into premium ultramobile devices in 2020 to make them more marketable to customers,” said Atwal.

PC devices

While worldwide PC shipments totaled 63 million units and grew 1.5% in the second quarter of 2019, unclear external economic issues still cast uncertainty over PC demand this year. PC shipments are estimated to total 256 million units in 2019, a 1.5% decline from 2018.

The consumer PC market will decline by 9.8% in 2019, reducing its share of the total market to less than 40%. The collective increase in consumer PC lifetimes will result in 10 million fewer device replacements through 2023. With the Windows 10 migration peaking, business PCs will decline by 3.9% in 2020 after three years of growth.

Most Popular

AWARDS

DIGITAL EDITION