Commercial PCs Lead the Way for Enterprises to Increase Productivity

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IDC’s latest China Smart Device Market Quarterly Tracker 2015Q4 shows that as the overall smart device market is going through a marked slowdown in growth, the commercial smart device segment well outperformed the consumer device segment. In 2016, China’s commercial smart device market is expected to bounce back from its low point and score a growth rate of 2.5%. The business PC market will also enter a period of positive growth in 2017. On the one hand, the next five years will see a peak period of commercial PC replacement in the market. With the application of “2-in-1,” ultra-light, thin notebooks and other diversified products, business PC sales will reach around 55.58 million units in 2020, with a CAGR of 2.9% from 2016 to 2020. The commercial notebook market is expected to grow at a 2.3% CAGR in 2016. By 2020, sales in this market will hit approximately 9.24 million units, with a CAGR of 4.5%.

Among commercial smart devices, the PC continues to be the core office tool. Surveys show that business owners realize that there is a problem of “terminal equipment aging”, which affects overall efficiency and competitiveness. In contrast, high-performance, easy-to-manage PCs help enterprises to become more competitive. Increased efficiency and competitiveness are the driving force for growth of commercial smart devices. According to Antonio Wang, Assistant Vice President of IDC China, “In addition to performance, there are more detailed product forms that can meet the needs of enterprises’ different application scenarios. Enterprises should actively eliminate their aging terminal equipment and deploy smart devices based on their various applications in order to increase their competitiveness.”

IDC offers additional guidance to the manufacturers and buyers of commercial PCs in the China smart device markets:

1. Enterprises’ PC applications also need a “supply side.”

“Supply side” was a key term in the China government’s annual work report delivered at the recently concluded Two Sessions, which stresses enterprise upgrading and state-owned enterprise reform under the new environment. However, many enterprises have ignored the role of PCs or commercial smart devices in enterprise upgrading and transformation. Better and more rational use of smart devices will greatly improve enterprises’ production efficiency.

2. The “Internet+” era requires commercial smart devices to possess greater mobility and integration.

Internet+” is one keyword that appears in the Thirteenth Five-Year Plan recently unveiled by the China government. The integration of the Internet into traditional industries presents new challenges to both business form and model. Better tools are therefore needed to help industry transformation and integration. Product size, weight, touch control, and voice function may vary greatly among industries and applications. Overseas, Apple and IBM are working together to seize the potential of the Internet+ industry application market. China brands and enterprises should also speed up their pace of development.

3. Different products for different posts.

As commercial smart devices acquire richer product forms, they will take over the position of traditional desktops or notebooks. Different work posts will require different products. “New form computers” will offer greater help to improve employees’ work synergy and the unified management of employees’ computer equipment. For example, reception posts in some enterprises will opt for all-in-one products, while sales employees will see more use of ultra-light, thin notebooks or 2-in-1 products. In some special industry applications, tablets or large-screen smartphones will be used.

4. New competitors inject vitality into the commercial smart device market.

As a popular saying goes, “without destruction there can be no construction.” The sluggish PC market in recent years has in part been due to the slow pace of change by traditional industry giants. New entrants stimulate industry change and faster product development. For example, in response to the continuous evolution of the Microsoft Surface Pro, Huawei has unveiled its MateBook at the Barcelona Fair and news has been continually coming in that Xiaomi will also enter the PC market. While attracting attention, the PC market has made industry insiders feel the onset of an imminent change.

5. Ultra-thin, portable products will become mainstream in the commercial market.

Enterprises have a growing demand for mobile office and mobile applications. Surveys show that the requirement for ultra-thinness and portability has become more important in enterprise customers’ product purchases. IDC predicts a notable growth of 10–13 inch ultra-thin and light products in the China market in 2016. This is mainly because such products possess the highest price/performance ratio in terms of computing performance, mobility, and screen size suitability. More importantly, the 10–13 inch size range will gather numerous star models in the market in 2016. These include the Surface Pro, Apple’s iPad Pro, the Lenovo Yoga, the Dell XPS, and the newly launched Huawei MateBook.

6. Commercial products must be attractive as well as functional.

With Bring Your Own Device (BYOD) and other emerging purchase models, part of the power to make commercial purchase decisions will gradually shift to individuals. It is imperative for manufacturers to change the dull appearance of traditional products. Commercial smart devices must have their own upgraded appearance. For example, the Surface Pro, a recent sales success story, not only satisfies customers by its performance alone — but also it has also won wide praise for its product design.