- The contraction is driven by a drop in private consumption
- The next year will be a rebound year for the country’s IT spending
According to a report by Gartner, Mobile phone sales are all set to contract by 2.4 per cent this year. It also stated that the contraction is driven by a drop in private consumption, and nobody is seeing any tangible improvements in the near- term.
It highlighted that the users are postponing their purchase plans, and the devices category under the overall IT sales will grow 6.3 percent to USD 35.468 billion in 2020.
Next year will be a rebound year
The report added that next year will be a rebound year for the country’s IT spending as consumers return to purchasing mobile phones after sitting on the sidelines in 2019. It added that the overall IT spend growth is slated to clip at 6.6 per cent in 2020, from 2 per cent in 2019.
The fastest growing segment will be software at 15.2 percent at USD7.354 billion, followed by IT services, at 13.4 per cent to USD 17.897 billion, it said. Growth in spends on communication services will come in at two per cent to USD 29.788 billion in 2020, as against a marginal decline in 2019.