SMEs shifting from retail IT purchases to resellers

A growing appetite for premium technology among small and medium-sized enterprise (SME) users is helping improve channel revenues as the gap between consumer and enterprise demands narrows.

Analyst firm Context has previously charted a shift by some business customers towards higher-specification PCs, with increased average selling prices (ASPs) benefiting the channel as part of the response to shortages, but the latest research signals that a wider trend is emerging across Europe.

Alongside the enterprise shift in preference towards higher-spec hardware, SME customers too are investing in quality infrastructure to support hybrid working and ensure security.

The trend has been emerging over the past year and picked up speed in the second half of 2025. Context found that in the latter part of 2025, retail chains saw ASP growth decline by 0.5% year on year. But, in the SME market, which is served primarily by resellers, ASPs grew by almost 8%.

That situation has continued into 2026. So far this year, the ASPs experienced by the small business channel have climbed by 7.6% year on year, compared with 3.2% in retail chains.

Analysis from Context suggests that the sole trader and small office/home office (SOHO) customer base, which often bought their IT equipment from a retail chain, is now looking for more capable technology and, as a result, turning to the channel to meet their needs. The demand for systems that can cope with security, artificial intelligence (AI) and hybrid working demands has influenced their buying patterns.

“Small businesses are making technology investments with a clear commercial objective in mind,” said James Bates, senior retail analyst at Context. “Whether it’s a freelance consultant, a growing startup or a 20-person agency, technology is viewed as a tool for productivity and growth rather than a discretionary purchase. That mindset is driving demand for higher-specification products and helping the reseller channel capture a growing share of premium sales.”

He added: “Many small business buyers require features that are rarely prioritised in traditional retail environments, from enhanced security capabilities to business operating systems and professional networking equipment. Resellers that understand these requirements are benefiting from significantly stronger ASP growth as a result.”

Last month, Context revealed that in a bid to get ahead of price rises triggered by storage component shortages, many customers were buying higher-spec PCs, which has driven ASPs up across the European channel.

Context’s analysis of sales figures, derived from distribution, indicates that in the first six weeks of the second quarter of 2026, notebook revenues going through European disties increased by 12% year on year, with desktops declining by 2% during the same period. Notebook unit sales dropped by 3% and desktop sales were down by 7%.

“After a strong first quarter where unit and revenue growth was fuelled by channel stocking ahead of anticipated price hikes, the dynamic shifted sharply at the start of Q2,” said Marie-Christine Pygott, senior analyst at Context.

“Unit volumes dropped following that period of intense stocking, but revenues continued to climb, albeit at a more moderate pace, driven by a significant rise in average selling prices and a market shift toward higher-end devices.”