PC shipments predicted to slump in 2016

Global economic issues weigh on the PC market, but forecast expected to improve

PC shipments are expected to fall this year, according to Gartner, which puts the slump down to global economic uncertainty.

This year, the analyst expects PC shipments to reach 284 million, down 1.5 per cent compared with the year before. But from 2017 onwards, growth is back on the cards, Gartner added.

Ranjit Atwal, research director at Gartner, explained: "Over the last three or four years the PC market has been rather depressed. We expected that 2016 may have been a little bit better but the current economic market is still problematic.

"Generally if you look at expectations around GDP growth, most countries' growth has been muted this year, which has a cascading effect in terms of eventually what budgets are given for PC spend."

But growth is forecasted for 2017 in the PC market, which Gartner defines as traditional PCs and premium ultramobiles, with an estimated 4.2 per cent annual increase in shipments to 296 million.

"2016 had a weak start to the year but it may finish off with a more positive slide at the end of the year," said Atwal. "Windows 10 is rolling out and the indications we are getting are that businesses are looking to move to Windows 10 fairly swiftly.

"The amalgamation of the PC and tablet into one useable device is appealing to businesses. I think that will continue into the next couple of years as they get budgets approved."

Global shipments for all devices, including mobile phones, are set to reach 2.4 billion units in 2016, a 0.6 per cent increase from 2015.

Smartphone shipments are expected to increase globally by seven per cent in 2016, and Gartner indicates that an extension of phone lifetimes could be one reason for the slow from previously double-digit growth.

Annette Zimmermann, research director at Gartner, said: "As carriers' deals become more complex, users are likely to hold onto phones, especially as the technology updates become incremental rather than exponential."