UK Computer Distributors and the Wait for Windows 8
Will Windows 8 rekindle the market for PCs? How much will it help the IT channel to recover revenue and profits?
The situation, in particular for UK computer distributors and their IT resellers, seems uncertain, according to research released in May by Gartner Group.
Lenovo’s aggressive pricing tactics in Q1 at the lower end of the market increased its market share to 7.8%. This put it hot on the heels of rivals Toshiba (8.6%) and Acer (9.7%). Even market leader HP, with 21.4%, may start to feel price pressure.
For PCs, Will It Just Come Down to Price?
Data from the analyst company for the first quarter of 2012 showed alternative devices like tablets and smartphones growing, while PC sales for Western Europe as a whole stagnated.
Company Research Director Ranjit Atwal appeared pessimistic about the opportunities to add value to the next array of ultrabooks and Windows 8 PCs, while justifying a price increase.
In fact, barring form factor innovation, he thinks price may be the only differentiator.
How IT Resellers Get Out of a Downward Price Spiral
Markets driven by price favor the low-cost suppliers and high-volume sales. This is not necessarily where every IT reseller wants to be.
If the base hardware (PC) and software (Windows 8) products cannot generate better profit for the IT channel, one answer is in accompanying value for added services. This includes cloud computing, managed services, consulting, or similar.
A number of UK computer distributors have already understood and reacted to the need to provide their resellers with alternative training and sources of revenue and business, instead of pure product.
Do you think the “PC pure play” reseller is still a viable approach? Can PCs alone still let you differentiate your offering to customers? Give us your point of view in the COMMENTS section.
And to follow-through on the ideas introduced in this short post, download your free quick reference guide to the Top 6 Computer Distributors that Help Small Business VARs, Network Integrators, MSPs, and PC Repair Businesses Cost-Effectively Deliver High-Margin, End-to-End Solutions.
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