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SMBs to Drive Bulk of Mobility Spending Over Next 5 Years

January 08, 2014 - News

SMBs will drive the bulk of mobility spending over the next five years, according to a new study from AMI-Partners, creating even greater revenue opportunity for channel partners.

Overall mobility outlay in North America should hit $71.5 billion in 2019, AMI found.

Of that, small businesses will put about eight out of every 10 technology dollars on mobility products and services. Their midsize counterparts, which employ between 100 and 999 workers, account for the remaining 20 percent, AMI said, and on a per-firm basis, spend up to 15 times as much as small organizations. Thus, these businesses make natural prospects for up-selling opportunities and big-ticket items, said AMI.

"The next five years will see impressive growth in North America consumption of mobility and data plans," said Andrew Kirk, an AMI associate. "The smartphone market will experience a strong increase in related spending as a result of sustained repeat and replacement purchases. As tablet usage attains mainstream status, significantly stronger growth is expected with regard to SMB installed base, volume and associated spend. We're forecasting a 21 percent CAGR in the U.S. and Canada for tablet data plans alone."

To those points, Apple remains dominant among business users but Android devices, particularly those made by Samsung, are making significant headway, AMI said. Microsoft also is encroaching on the market with its Windows 8 operating system and gadgets.

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