Skip to main content

Why Legacy PC Vendors Promote Device-as-a-Service

Once upon a time, a few years ago, technology industry analysts reported on global market growth for new devices -- where personal computers, media tablets and smartphones were in demand by both consumers and businesses. However, then came widespread market saturation, and declines in demand.

Worldwide tablet and PC shipments will fall by 2.1 percent to 398 million units in 2018, according to the latest market study by Canalys. But this represents the smallest decline of the past four years and sets the tone for an era of stability. So, when does the market trend return to growth? That remains a mystery.

Personal Computing Device Market Development

Consumer refresh cycles have started to stabilize, and the legacy PC vendors have focused on new categories, such as gaming PCs, Chromebooks and convertibles. On the commercial side, Microsoft Windows 10 migration is a driver for hardware refresh, as some businesses are forced to move from Intel Skylake-generation architectures to newer processor technologies.

"Commercial customers will be a vital driver for PC shipments in 2018," said Ishan Dutt, research analyst at Canalys. "Vendors now have several strategic options for achieving growth."

Firstly, several vendors are now tracking their customers that are still running Windows 7 and will specifically target these accounts with sales teams. Secondly, vendors will promote and invest further in Device as a Service (DaaS) offerings, which lock-in PC refresh cycles.

But shifting from a transactional to contractual selling model is a major operational challenge for customers and channel partners, and this will prevent DaaS becoming a major revenue stream in the near-term.

And finally, several PC vendors will invest to grow the Google Chrome OS platform outside of the United States this year, with a specific focus on the education sector.


"Consumer demand will remain weak overall," said Dutt. "Components such as DRAM will remain constrained in the short-term, and vendors will pass most of the increased costs onto customers, driving up ASPs."

But dedicated gaming PCs have emerged as a modest hotspot in large markets -- such as the United States, China, Russia, Japan and South Korea -- where eSports has helped to generate an appetite among younger consumers with disposable incomes who are willing to spend for high performance.

The consumer market is also more likely to see new brands challenging HP, Lenovo and Dell. Despite the sector's weak performance, there are lower barriers to entry from a channel perspective compared with the commercial sector. Huawei and Xiaomi are attempting to disrupt selected markets, but nether yet has a range of products or channel partners to displace the legacy incumbents.

Despite a recent rise in iPad shipments, the tablet category remains in decline as consumers show a preference for smartphones as their primary mobile devices and rely on traditional PCs for more compute-intensive tasks. The category is expected to contract by almost 3 percent per year on average from 2017 to 2022, down almost 150 million units from the market peak in 2014.

Once a consumer-centric product, tablets are now shifting in a commercial application direction. The connectivity, portability and display size of cheaper slate tablets deliver a solid value proposition to important industry verticals -- such as education, healthcare and retail.

Outlook for Commercial Tablet Applications

Often, these devices are locked to a single application for a specific business function, such as point of sale (PoS). But knowledge workers need more, and corporate resellers are now pitching detachable tablet devices -- such as the iPad Pro and Surface Pro -- to businesses as part of workforce transformation initiatives.

But these devices represent a very small proportion of the commercial PC market, as IT managers still face constraints, such as price, number of ports, compatibility with peripherals and the prospect of managing an ecosystem of multiple operating systems.

Popular posts from this blog

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun

Secure Digital Workspace Apps Enable the Future Enterprise

In early 2020, as the world responded to the COVID-19 pandemic disruption, many organizations were forced to rapidly transform their communications networks and IT infrastructure to support an unprecedented shift to remote work. Before the pandemic, approximately 38 percent of employees were remote full-time or had a flexible work arrangement where they split time between home and office locations. During the pandemic, the percentage of remote workers that CIOs had to support reached almost 72 percent. Future Enterprise Technology Market Development Enterprise leaders have been forced to adapt to a new state, shifting from traditional office-based operations to distributed workforce environments that must still provide the same level of connectivity, security, and efficiency across the organization. According to the latest worldwide market study by International Data Corporation (IDC), addressing connectivity across geographies and transforming networks to become more virtual and agile