Enterprises to Cut PC Purchases as Prices Increase: Gartner
PC vendors will grow prices by 10 percent to compensate for profits lost to the strong dollar, and some businesses and consumers will delay purchases.A worldwide PC market that already is under pressure will see vendors increase the prices of their systems this year by as much as 10 percent to offset the impact of a strong dollar on profits, and businesses will respond by holding on to their older systems, according to Gartner analysts. In a report April 29, Gartner said prices in such mature markets as Western Europe and Japan, where the strong dollar is particularly impinging on corporate profits, will see sharp increases. "Device vendors will mitigate the impact of their declining 'dollarized' profits by taking advantage of single-digit-percentage decreases in PC component costs during 2015, and by selling PCs with fewer features to keep prices down," Ranjit Atwal, research director at Gartner, said in a statement. "However, vendors' margins will fall, even as they shift their shipment focus to the regions least affected by these currency effects." The result will be larger enterprises and some consumers putting off buying new PCs due to the higher prices, while smaller businesses and other consumers will buy less-expensive systems with fewer features. Larger companies will reduce their PC purchases by as much as 20 percent, according to Atwal.
"Large organizations will look to lengthen their PC lifetimes by six months (10 percent) in comparison with 2014, rather than buying less expensive models or removing requirements for key features," he wrote. "In addition, purchases of optical drives and optional accessories will disappear."