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Computing Device Shipments Showing 'Surprising Resilience,' Says SA Report

Laptops and tablets are showing “surprising resilience” despite a 4 percent drop in global shipments year on year, said a Wednesday Strategy Analytics report. The 2018 connected computing market installed base is at 1.5 billion units globally, with household penetration…

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of at least one device at 30 percent, said SA. Consumers are paring down the number of computing devices they own, holding on to them longer and replacing them less regularly, said the researcher. Connected computing device unit sales are projected to grow from 354 million this year to 403 million in 2022, with revenue rising from $148 billion to $156 billion. “People use devices based on what makes the most sense at any given time,” said analyst Eric Smith, and while smartphones fill much of that need, laptops and tablets are the “go-to devices for long-form entertainment and work.” Vendors should understand what drives a buyer to choose ultramobile, notebook and 2-in-1 PCs, and they should optimize tablets for entertainment use as older devices approach the end of the replacement cycle, Smith said. Analyst David Mercer cited “uncertain times” as enterprises become more flexible with form factors to help employees become more productive, but “consumers are not as impressed.” New, slimmer form factors come at higher cost, a “major impediment to faster replacement rates as household electronics budgets are spread thinner every year,” Mercer said. In emerging markets, rising household income will drive connected computing device sales for entertainment and productivity, said analyst Chirag Upadhyay, while replacement rates in developed markets will rebound as many devices “are too old to handle modern demands and cannot keep up with the behavioral changes of both consumer and enterprise users.” Fierce competition will drive down prices to fit more consumers’ budgets, particularly for detachable 2-in-1 PCs, he said.