What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.
Sunday, January 12, 2014
Devices and Telecom Services Struggle in 2013
Research firm Gartner said spending on devices (including PCs, ultramobiles, mobile phones and tablets) contracted 1.2% to 669 billion U.S. dollars in 2013, while the global market for IT services grew 1.8% to 922 billion dollars. The telecoms services market shrank by 0.5% in 2013 to 1.63 trillion dollars, according to the research firm.
Gartner lowered its forecast for overall IT spending growth in 2014 to 3.1% from the 3.6% it forecast at the end of the third quarter 2013. "A downward revision of the 2014 forecast growth in spending for telecom services — a segment that accounts for more than 40% of total IT spending — from 1.9% to 1.2% is the main reason behind this overall IT spending growth reduction," said Richard Gordon, managing vice president at Gartner "A number of factors are involved, including the faster-than-expected growth of wireless-only households, declining voice rates in China and a more frugal usage pattern among European customers. The latter coincides in Western Europe with a breakout of fierce price competition among communications service providers to retain customers and attract new ones." source: Gartner statement