PC vendors need to change their business model by 2020 or leave the market entirely, according to analyst Gartner.
Tracy Tsai, research vice president at Gartner, claimed that although the top five mobile PC vendors have collectively gained 11 points in market share over the last five years, moving from 65 per cent to 76 per cent, they have done so at the expense of profit.
Tsai went on to explain that PC vendors need to be less concerned with market share and more concerned with margins.
"The PC business model as we have traditionally known it is broken," Tsai said.
"PC vendors need to streamline operations, shift their focus away from gaining share, and increase the sales proportion of mid-tier and high-end products to improve operating profits for long-term business sustainability.
"PC vendors need incentives to drive their internal sales teams and channel partners to move away from a focus on volume and market share to margins and profitability."
Tsai went on to highlight alternative ways of working that PC vendors should be looking at in order to stay competitive.
Vendors can both shift from their traditional product lines and look to be more innovative; adopt new business models, for example a PC-as-a-service model; or start an "aggressive" transformation that will see them introduce new products and new business models, he said.
"Some vendors may need a whole new business and product strategy to turn their situation around," Tsai said.
"PC vendors need to identify their core competencies, evaluate their internal resources, and adopt one or more alternative business and product innovation models to stay in or leave the PC business."
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