Mobile Shopping

Consumer spending on devices — such as tablets, phones and desktops — will generate a two percent increase by the end of 2017, Gartner Inc. predicts. According to its research, the purchases will result in nearly $600 billion with transactions made on mobile devices comprising 67 percent.

The average cost of devices is rising, which is partially contributing to the increase in consumer spending. The report also notes that consumer interest has shifted from shoppers seeking a good deal to valuing high-quality products. As shopper habits continue to diversify in the mobile landscape, consumers also seek devices that are able to support — and provide — new features for social engagement and app functionality.

“Across the world, the device market is becoming less price-sensitive,” said Ranjit Atwal, research director at Gartner. “Consumers and businesses are seeking better products that suit their lifestyles, rather than just opting for the cheapest products.”

Gartner predicts that the end-using spending in the mobile phone category will surpass both traditional PC and basic or utility phones by 2019. Its research concluded that end-using spending will rise from nearly $383 billion in 2017 to $423.5 billion in 2019. Spending on traditional PCs will slow from almost $164 billion this year to just over $169 billion in 2019. The report expects for spending to decline over the next few years on ultramobiles — basic and utility — from $40.3 billion to $34.4 billion in 2019.

“The increased average selling price for mobile phones was driven by users across the board,” said Annette Zimmermann, research vice president at Gartner. “They are replacing their basic phones with better-quality and more feature-rich basic phones, due to improved product portfolios from rising vendors such as Huawei and Oppo. In emerging markets, the majority of users are upgrading to better basic phones as the leap to premium phones remains out of reach for most.”

As technology continues to flatten retail markets, global consumers will expand device usage for international purchases with once out-of-reach brands and retailers.

More on Consumer Behavior from WWD:

Web Site Traffic Declines Across Sectors While Consumers Also Switch to Mobile

U.S., China Consumers Lead Cross-Border Commerce

The Millennial-Effect Spreads to Luxury Consumers

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