PC vendors slash inventory to mitigate currency risks
Gartner claims inventories will be cut by five per cent by the end of the year
PC vendors are set to slash their inventory levels by at least five per cent by the end of the year in a bid to minimise pricing exposure in the channel, Gartner has claimed.
The analyst said currency issues are weighing heavy on the minds of all those in the channel, prompting them to take measures into their own hands.
"The end of the migration from Windows XP negatively affected the PC market globally during the first half of 2015; however, the greater impact remains the currency depreciation against the dollar," said Gartner research director Ranjit Atwal. "PC vendors are increasingly reducing their inventory levels - by at least five per cent until the end of 2015 - as a way to minimise pricing exposure in the channel."
Global shipments of devices - PCs, tablets, ultramobiles and mobile phones - will reach 2.5 billion units by the end of the year, up 1.5 per cent on 2014. Gartner had predicted the growth figure would reach 2.8 per cent.
Spending on devices globally will slump 5.7 per cent annually in 2015 to $606bn (£392.64bn) - the first time the market has declined since 2010, Gartner claims.
"This was partly due to a continued slowdown in PC purchases in western Europe, Russia and Japan in particular, largely due to price increases resulting from local currency devaluation against the dollar," Atwal added.
By 2016, close to 50 per cent of households in mature markets will have a tablet device, Gartner claims, adding that the average lifetime of the device will reach three years.
Despite the strong predicted market penetration, Gartner research director Roberta Cozza said the market still has its fair share of challenges.
"The tablet market is hit by fewer new buyers, extended lifecycles and little innovation to encourage new purchases," she said. "The tablet has become a ‘nice to have' device and there is no real need for an upgrade as regularly as for the phone."