Indians are spending less on mobile phones, PCs in 2022 as compared to 2021: Report

1 year ago 919

Indian

Consumer IT spending

, which includes spending on hardware, software, and IT services (excluding telecom spending, business services, and some emerging technologies) will grow by 13.8% in 2022 – down from 25.3% in 2021, a new report says. However, the Indian IT spending exceeds the average spending of countries in the Asia Pacific region except Japan and China (APeJC) and others globally.
Decline in purchase of mobile phones, PC, and notebooks
According to the latest data released by

IDC

's Worldwide Black Book: Live Edition, the drop in consumer IT spending can be attributed to the recovery sentiment pervasive in Q1 2022 and the weakening economic scenario from Q2 2022 onwards.
“Consumer IT spending, which recorded strong growth in 2021, is under pressure. Sales of PC, notebooks, hardcopy peripherals, and tablets are expected to grow, albeit at a subdued pace this year due to less pent-up demand and the tail end of the buying cycle, which started in 2021 due to the pandemic. Mobile phone shipments declined for the third consecutive quarter in Q2 2022. Mobile phones constitute almost 60-65% of consumer technology spending in India," the report says.
It highlights that high prices due to inflation and unfavourable exchange rates will further negatively impact the spending on mobile phones and, eventually, the overall consumer technology spending growth.
Even after the promotional discounts during the festive season in Q3 2022 and Q4 2022, the overall market growth by shipment and value of IT products are also predicted to be lower than that of 2021 and reach pre-pandemic levels. However, introduction of 5G services in urban areas is expected to induce mobile device refresh but at a higher price point.
Enterprise IT spending on a rise
The IDC report says that when it comes to spending in Enterprise IT, companies are shelling out money on cloud, security, AI, and automation to be future-ready.
"An ongoing IDC survey of Indian enterprises indicates that, on average, six out of seven enterprises either plan to keep or increase their 2022 IT budgets to what was initially planned. Despite the increasing cost, demand for IT infrastructure, software, and IT services is not slowing down. Digital transformation and IT modernisation are prioritised to increase or maintain the competitiveness and efficiency of business operations," IDC says.
IDC also says that the spending in both Consumer IT and Enterprise IT will see a decline in 2023.

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