In 2021, the global demand for IT devices, such as desktop PCs and mobile phones, reached a record $730 billion in sales revenue. However, there has been a fluctuation in demand since then.
Despite a significant recovery from a sales slump in 2022, the negative trend is expected to persist in 2024. Data from Stocklytics.com indicates that global spending on PCs and mobile phones is projected to decrease by $10 billion this year.
This marks the second revenue drop since 2020. During the COVID-19 pandemic, companies and consumers globally underwent a major technology refresh, investing heavily in new tablets, laptops, and mobile phones. In 2020, the total spending on these devices was $670 billion, and it rose to $730 billion in the following year.
However, economic uncertainty and pandemic-induced layoffs led to a substantial spending drop in 2022, with total sales revenue plummeting by a significant $40 billion year-over-year, the largest decline in years.
Despite a notable market recovery in 2023, with sales revenue reaching $720 billion, 2024 is anticipated to witness another downturn. While companies are increasing their IT spending budgets, inflation has eroded consumer purchasing power, resulting in fewer people allocating their available income to technology.
Statista predicts a $10 billion, or 1.8%, year-over-year drop in global spending on PCs and mobile phones in 2024, reaching $710 billion. This marks the second consecutive annual revenue drop since 2020. Nevertheless, the negative trend is expected to reverse in the coming years, with total sales revenue projected to rise by 14% to $810 billion by 2028.
The decline in smartphone sales continues to contribute significantly to the overall market downturn. Despite growth in emerging markets, global smartphone sales have been heavily impacted by component shortages, inventory build-up, and longer replacement cycles.
In 2022 alone, global smartphone sales plummeted by $27 billion year-over-year to $454 billion. Although there was a recovery last year, with total sales revenue increasing to $479 billion, a reversal is expected in 2024.
Statista anticipates a $11.4 billion decrease in global smartphone sales in 2024, marking the most substantial decline among all IT devices. In comparison, tablet sales are forecasted to drop by $1.2 billion to $53.7 billion, and global laptop sales will reach $127.5 billion, $100 million less than the previous year. Conversely, desktop PCs are the only market segment expected to exhibit a positive trend, with total sales revenue increasing by $100 million year-over-year to $38 billion in 2024.
News Source: Tech News
