Menu
Vendors poised to raise prices as NZ ICT spend stalls

Vendors poised to raise prices as NZ ICT spend stalls

“We want to stress that this is not a market crash.”

New Zealand IT spending is forecast to reach NZ$11.4 billion in 2015, a slight decrease of 0.8 per cent from last year, ahead of worldwide spending forecasts which are predicted to drop 5.5 per cent.

According to Gartner findings, a decrease in spending on devices across the country, including PCs, tablets, printers and mobile phones and communications services is behind the overall decline.

Globally speaking, worldwide IT spending is on pace to total $3.5 trillion in 2015, a 5.5 per cent decline from 2014, which analysts attribute to the rising U.S. dollar.

In constant-currency terms, the market is projected to grow 2.5 per cent while in Gartner's previous forecast in April, it had forecast IT spending to decline 1.3 per cent in U.S. dollars and grow 3.1 per cent in constant currency.

At a regional level, Asia Pacific IT spending is forecast to total US$743 billion in 2015, an increase of 0.7 per cent from 2014.

However, in constant-currency terms, the market is projected to grow 4.5 per cent in 2015, revised downward by 0.5 per cent from last quarter’s forecast.

Across the ditch the market bucks the trend, with Australian IT spending is forecast to reach almost A$78.1 billion in 2015, an increase of 2.1 per cent from 2014.

In this growth, IT services represents the largest spending category at A$28.8 billion, while software is the fasting growing area of spending, expected to grow 9.8 per cent in 2015 to reach almost A$9.4 billion.

“We want to stress that this is not a market crash,” says John-David Lovelock, research vice president, Gartner.

“Such are the illusions that large swings in the value of the U.S. dollar versus other currencies can create. However, there are secondary effects to the rising U.S. dollar.

“Vendors do have to raise prices to protect costs and margins of their products, and enterprises and consumers will have to make new purchase decisions in light of the new prices.”

The Gartner Worldwide IT Spending Forecast predicts that communications services will continue to be the largest IT spending segment in 2015 with spending at nearly $1.5 trillion.

However, this segment is also experiencing the strongest decline among the five IT sectors. Price erosion and competitive threats are preventing revenue growth in proportion to increasing use within most national markets.

Mobile

In the device market, mobile phones continue to be the leading segment, with growth in Apple phones, especially in China, keeping overall phone spending consistent. However, overall smartphone unit growth will start to flatten.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobileGartnerNetworkingsmartphoneit servicesPCTablet

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments