Global shipments of computers and smartphones are anticipated to decline this year due to China’s slowing economy and a drop in consumer spending brought on by inflation, predicts research firm Gartner.
Shipments to China, the largest smartphone market in the world, are predicted to decline by 18% as a result of strict COVID-19 curbs that have halted activity in important economic hubs like Shanghai, according to a report released on Thursday by Gartner.
The research company predicts a 7% decline in smartphone shipments globally, which also takes into account the demand impact of supply chain snarls and the conflict between Russia and Ukraine.
According to Ranjit Atwal, senior director analyst at Gartner, “a perfect storm of geopolitical upheaval, high inflation, currency fluctuations, and supply chain disruptions have lowered business and consumer demand for devices across the globe, and is set to impact the PC market the hardest in 2022.”
Global computer shipments are predicted to decline by 9.5% this year, according to Gartner.
The prediction is consistent with statements made by industry insiders; earlier this month, chipmaker Advanced Micro Devices Inc. predicted a slowdown in the PC market following two “very strong” years.
Companies ranging from chipmakers like Nvidia Corp. to mega-cap tech companies like Apple Inc. and Microsoft Corp. are likely to feel the effects of the weak PC and smartphone demand. These businesses are scheduled to start reporting second-quarter earnings soon.
