Menu
​Why linking services and hardware can help save flagging PC vendors

​Why linking services and hardware can help save flagging PC vendors

Price wars among the OEMs fade as market changes.

Capitalising on the profit potential of the PC market will require an approach that links services and hardware, as the industry prepares to flatline through to 2020.

Currently, PC OEMs aim to protect operating profitability and stabilise gross margins while earning greater profit per sale, but as the dynamics of the PC market change, so too will how OEMs seek to generate greater profit.

“The volume‐centric strategies that propelled PC OEMs’ growth and vendor focus on boosting sales volume of premium PCs are out of sync with the dynamics of the PC market in 2Q16,” Technology Business Research senior analyst, Jack Narcotta, said.

“The price wars among the OEMs are over.

“During this transition from volume sales to a profit‐first approach, OEMs, and their partners, will not always pursue greater profits through traditional means such as greater sales of premium PCs or other devices, although those are important segments.”

Narcotta said PC vendors able to move services into a leading role will not only create supplemental revenue and profit streams but also boost customer loyalty, protect their install bases and foster greater predictability.

Services, and to lesser degree peripherals, particularly 4K‐ready video displays, are primed to occupy a leadership role alongside PC hardware.

“Larger OEMs are better positioned to shift their go‐to‐market strategies, as they possess the necessary hardware portfolio, service staff and support capabilities,” Narcotta added.

Looking ahead, Narcotta believes that smaller OEMs leveraging sales of premium 2‐ in‐1 and gaming PCs to protect PC business, or overall financial health, but lacking a comprehensive roster of services to accompany device sales will find it increasingly difficult to adapt, leading some to exit the PC market.


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 PCTechnology Business Research

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments