Gartner: Global Spending on Digital, Electronic Products to Jump 5% in 2011
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Gartner (NYSE: IT) expects global spending on digital information and entertainment products and services to rise by 5 percent to $2.1 trillion next year, and grow about 8.8 percent to $2.8 trillion by 2015.
The firm notes companies will trend more toward diversification of offerings rather than just being dedicated to a smaller portion of a segment.
The lion's share of spending in 2010 went to communications subscription-based services. About 62 percent went to companies like Verizon (NYSE: VZ), Vodafone (NYSE: VOD), AT&T (NYSE: T), Deutsche Telekom, Sprint (NYSE: S), and other global providers.
Consumer electronics took second spot, with about 10 percent of spending. Companies in this category include Apple (Nasdaq: AAPL), HTC, Motorola (NYSE: MMI), Hewlett-Packard (NYSE: HPQ), Dell (Nasdaq: DELL), and others.
Finally, 10 percent went to content and software. You'll find names like Amazon.com (Nasdaq: AMZN), Dish Network (Nasdaq: DISH), DirecTV (NYSE: DTV), and others here.
Notably, Apple is making the case for diversification. As an example, it introduces innovative mobile products, and then creates environments where those products interact. Several years ago, no one would have thought Apple would dominate the music industry quite the way it has with iTunes -- yet another example of branching out into a different segment.
Gartner notes the challenges in sticking to one's guns; the dedicated resources and innovations to stay atop one industry don't make it worth it sometimes.
Finally, Gartner offers-up three key areas which will offer the best opportunity for vendors:
The firm notes companies will trend more toward diversification of offerings rather than just being dedicated to a smaller portion of a segment.
The lion's share of spending in 2010 went to communications subscription-based services. About 62 percent went to companies like Verizon (NYSE: VZ), Vodafone (NYSE: VOD), AT&T (NYSE: T), Deutsche Telekom, Sprint (NYSE: S), and other global providers.
Consumer electronics took second spot, with about 10 percent of spending. Companies in this category include Apple (Nasdaq: AAPL), HTC, Motorola (NYSE: MMI), Hewlett-Packard (NYSE: HPQ), Dell (Nasdaq: DELL), and others.
Finally, 10 percent went to content and software. You'll find names like Amazon.com (Nasdaq: AMZN), Dish Network (Nasdaq: DISH), DirecTV (NYSE: DTV), and others here.
Notably, Apple is making the case for diversification. As an example, it introduces innovative mobile products, and then creates environments where those products interact. Several years ago, no one would have thought Apple would dominate the music industry quite the way it has with iTunes -- yet another example of branching out into a different segment.
Gartner notes the challenges in sticking to one's guns; the dedicated resources and innovations to stay atop one industry don't make it worth it sometimes.
Finally, Gartner offers-up three key areas which will offer the best opportunity for vendors:
- Wireless broadband;
- Location-based services; and
- Operating systems.
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