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PC shipments decline 5.4% this year, with premium ultra-mobile devices the only ones to show growth.
5G mobile phones are expected to be released in 2019, and 9% of smartphones sold by 2021 will support 5G networks.Gartner predicts that worldwide shipments of devices, including PCs, tablets, and mobile phones, will reach $2.32 billion this year, up 2.1 percent from $2.28 billion in 2017.
The mobile phone market, dominated by high-end smartphones, and the premium ultramobile market, dominated by thin and light devices from Apple and Microsoft running Windows 10, are expected to drive device shipment growth in 2018.
“Consumers have so many technologies to choose from that it presents two major challenges for manufacturers,” said Ranjit Atwal, research director at Gartner. “First, they must compete for wallet share given the number of devices consumers own. Second, they must offer the right device based on value and consumer interest.” He continued, “As more consumers prioritize value over price alone, we will see more consumers considering higher-priced devices.”
PC market growth to slow in 2018
Gartner forecasts a 5.4% decline in PC shipments this year (see Table 1), with notebook shipments experiencing the largest decline, down 6.8%. The premium ultramobile market will be the only PC market to show growth this year, and is expected to play a crucial role in the overall PC market's performance.
“DRAM costs have doubled since June 2016, and PC manufacturers began raising prices in the first half of 2017,” said Atwal, a senior researcher. “This trend is expected to continue this year as long as DRAM price trends remain unchanged.”
By 2021, 9% of smartphones sold will support 5G.
Gartner forecasts that mobile phone shipments will increase by 2.6% in 2018, reaching 1.9 billion units. It also forecasts that smartphone sales will grow by 6.2% this year, accounting for 87% of all mobile phone sales. Roberta Cozza, research director at Gartner, predicted that “Apple’s new smartphone launch will accelerate consumers’ mobile phone replacement cycle, and sales of Apple’s smartphones will show a growth rate above the market average.”
In 2018, smartphone vendors are expected to focus on delivering powerful personalized experiences through on-device AI, natural user interfaces rather than virtual personal assistants, biometrics, and enhanced display and camera capabilities. These technologies are expected to be unveiled at Mobile World Congress 2018 in Barcelona, Spain.
5G mobile phones are expected to be released in 2019, when 5G networks begin to roll out in some countries, including the U.S. and South Korea. "By 2021, approximately 9% of smartphones sold will support 5G," said Cozza, a senior research analyst. "5G will deliver faster uplink speeds and support new AI applications, which will drive video and streaming services."
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