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Leading PC makers set to expand product range to target existing customers

With little growth forecast, PC manufacturers are trying to tie in additional services with their hardware to lock in customers

Analyst firm Canalys has forecast that shipments of desktops, notebooks and two-in-ones will fall overall in 2019, which will force major PC manufacturers to extend their product offerings.

According to Canalys, as shipments fall, the major PC manufacturers are modifying their strategies to generate more value from new and existing customers.

Discussing the business PC segment, Canalys analyst Ishan Dutt said: “Dell is making significant investments in gaining SMB customers, increasing the amount of its direct sales personnel focused on the segment and driving new products, including two-in-ones, toward commercial users.”

Canalys said it expected manufacturers will also begin to attach more services to their hardware portfolio, locking in customers to stricter refresh cycles and positioning products specifically aimed at verticals.

HP’s expansion of its DaaS offerings across Europe, which include Apple products, and its launch of dedicated hardware for education and healthcare customers, emphasises the importance of a strategy to tap into the key trends emerging in the commercial PC space,” said Dutt.

Small and medium-sized business still running Windows 7 will need to upgrade before the start of 2020, when support ends. Canalys said it expected this would drive PC hardware upgrades. SMBs will be a key driver for tail-end Windows 10 upgrade demand,” he added.

The PC market has also been plagued by Intel processor supply issues. The Intel processor shortfall has been capitalised by rival chipmaker AMD.

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“Problems with Intel processor supplies are set to ease from Q3 2019, providing relief to the market in the second half of the year and setting the stage for a tussle between Intel and AMD,” said Dutt.

The analyst firm said it expected AMD will focus on entry-level PCs, while Intel prioritises supply of its premium and server chips, such as Core i9 and Xeon. “The next few months will determine AMD’s long-term success as its reliance on Intel shortages comes to an end,” he concluded.

Read more on PC hardware

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