Gartner lowers forecast for tablet spending by enterprises

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Research firm Gartner has recently announced that IT spending on tablets will be lower than previously estimated, resulting in a cut in its prediction for enterprise spending on devices worldwide.

Gartner said that it expects IT spending on devices, including tablets, mobile phones, PCs and printers, to total $666 billion in 2013, down from its previous estimate of $706 billion. The $666 billion estimate is still a 6.3 percent increase from the 2012 device spending figure.

The research firm expects the growth in device spending to average 4.5 percent annually in current United States dollars through 2016, down from a previous prediction of 6.4 percent growth. In constant U.S. dollars, device spending growth is predicted to average 5.1 percent annually, down from a previous 7.4 percent estimated annual growth figure.

"The tablet market has seen greater price competition from Android devices as well as smaller, low-priced devices in emerging markets. It is ultimately this shift toward relatively lower-priced tablets that lowers our average selling prices forecast for 2012 through 2016, which in turn is responsible for slowing device spending growth in general, and PC and tablet spending growth in particular," said Richard Gordon, managing vice president at Gartner.

IT spending on mobile data services is expected to represent one-third of enterprise spending on telecom services overall by 2016, up from 22 percent last year. This is a result of an expected surge in mobile data services spending combined with flat spending levels in other telecom services sector, said Gartner.

Worldwide IT spending is forecast to total $3.7 trillion in 2013, a 4.2 percent increase from 2012 spending of $3.6 trillion, according to Gartner. This is an upward adjustment from the third quarter forecast of a 3.8 percent increase for 2013.

"Uncertainties surrounding prospects for an upturn in global economic growth are the major retardants to IT growth. This uncertainty has caused the pessimistic business and consumer sentiment throughout the world. However, much of this uncertainty is nearing resolution, and as it does, we look for accelerated spending growth in 2013 compared to 2012," Gordon observed.

For more:
- see Gartner's release

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