Global Spending on IT Devices to take a dive by $108bn in a Year
The Pandemic caused a global IT spending to dip 8% this year, with thousands of businesses cutting their technology and service budgets and financing limited to essential IT costs. Though the entire sector is predicted to shrink, IT devices and data center systems will particularly witness a significant drop in consumer spending this year.
According to data gathered by LearnBonds, the global spending on IT devices is forecast to take a dip by $108bn year-on-year, falling to $590bn in 2020.
Revenue collapsed 15.5% in 2020
In 2012, consumers across the globe spent $676bn on IT devices, including PCs, ultramobiles, tablets, mobile phones, and printers, revealed Statista and Gartner data. Nearing 2016 end,
this value dropped to $630bn. Again, over the next two years, global spending on IT devices took jump to $712bn, a six-year high.
Statistics and various market reports show that by the end of 2019, this figure slightly dropped to $698bn. However, the COVID-19 pandemic triggered an IT industry recession, with even the largest tech companies like America’s IBM and HP, or China’s Lenovo, witnessing falling sales and tumbling stock prices. The Gartner data revealed that global consumer spending on IT devices is expected to plummet to $590bn in 2020, down 15.5% in a year.
John-David Lovelock, Vice president, Gartner said, “IT spending recovery will be slow through 2020, with the hardest hit industries, such as entertainment, air transport, and heavy industry, taking over three years to come back to 2019 IT spending levels.”
Computing Revenue to topple by $14.3bn This Year
Apart from a significant decrease in the IT device consumer spending, statistics estimate a substantial fall in global computing industry revenue in 2020. The market, which includes retail sales of laptops, tablets, desktop PCs, storage units, PC monitors, and keyboards, hit $278.9bn in revenue last year. Due to the COVID19 pandemic, this value is expected to sprawl to $264.6bn in 2020, a $14.3bn drop in a year.
As the largest revenue stream of the entire market, laptops and tablets sales is projected to decline by 9.7% year-on-year, falling from $171.6bn in 2019 to $161.9bn in 2020. Desktop PCs sales revenue is conjectured to plunge by $1.6bn year-on-year, while storage unit revenue is expected to fall by $1.2bn in 2020.
Such statistics only indicate that consumers worldwide are likely to reduce their spending on PC monitors and projectors by more than $1bn this year. Keyboards and printers are in queue with $200m, and $500m drop in revenue, respectively.