While some anticipate PC and tablet sales to continue to decline in 2023, much of that decline is expected to stabilize by 2024. That could have something to do with growing adoption of tablet and tablet PC configurations as business-standard devices by enterprise customers. NPI data reflects this trend as we see more of our clients adopt (and refresh) these kinds of devices. We expect this trend to strengthen – and, with that, inquiries about pricing.
Supply chain disruptions continue to impact the wider PC market as a whole. Apple has thrown in additional complications with cuts to available iPad Pro models and a pullback on what had briefly been increased discounting on larger, bulk purchases.
While this continues to be a challenging market, NPI recommends reviewing major hardware purchases as a ‘low-hanging fruit’ area of savings possibilities. There are some predictions that price cuts could be coming to the wider PC market as a whole. Here are some expectations and considerations to factor into your next tablet/tablet PC purchase.
Expect Low Flexibility in Pricing for Apple Devices
Apple has never had a reputation for being particularly giving when it comes to discounts from established MSRPs. That rang true in 2022 when we saw a noticeable decline in concessions passed on even to the vendor’s higher volume customers. Unfortunately, Apple has decreased expected production for 2023 amidst reports that it may move manufacturing out of China in part. While this may provide more supply chain stability in the long term, it could possibly increase disruptions in 2023.
Include the Pixel Tablet in Considerations
Poised to launch sometime in 2023, Google is expected to debut its upcoming Pixel Tablet in the $400 – $500 base range as they expand their hardware strategy. Although unconfirmed, Google is reportedly preparing a “Pro” model of this device as well for subsequent release. Exact differentiations on this model are unknown at the time, but they could include features to make them more applicable to enterprise and/or retail functionality, including scanning capabilities via a more advanced back camera.
It’s been rumored that at least one model of the Pixel will likely even include popular technologies like NFC-enablement, making Google’s new device a potential contender in many larger volume tablet deals.
This is separate from the Pixel Slate, Google’s more PC-oriented tablet configuration. This configuration will likely see more widespread distribution as that product family continues to evolve into a more diverse set of offerings. All these factors could make the upcoming Pixel Tablet a major disrupter to insert to gain competitive leverage in tablet deals.
Position Bulk Purchases While Controlling Timelines
The presence of concentrated purchases remains one of the main factors in increasing leverage and improving unit prices when costs are noticeably above fair market value range. NPI recommends that once a fair market value price target is set, bulk purchasing considerations can be the best strategy available.
Payment terms and delivery timelines are also increasingly part of negotiations with almost as much focus on them as pure pricing. NPI also recommends looking at resellers specializing in tablet distribution, particularly when it comes to any customization aspects.
Enterprises with tablet/tablet PC purchases on the docket for 2023 should be sure to validate and negotiate pricing and discounts that are at or better than fair market value. Keep in mind that much has changed in the last three years – supply chain disruptions, parts shortages, inflation – and these factors have greatly impacted how buyers can secure and apply effective leverage during the purchasing process. It’s important to approach your next purchase with validated pricing targets, competitive leverage, and an understanding of exactly what’s motivating your vendor at the negotiation table.
If you’re planning a tablet or tablet PC purchase or refresh in 2023, NPI can help you negotiate best-in-class pricing. Contact us to learn more.
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