Market Trends: Can Device Vendors Build a Sustainable Digital Business Model Based on New, Recurring Revenue Sources?

Published: 28 February 2017 ID: G00318953


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Technology strategic planners for device vendors should leverage digital business opportunities and the economics of connections to enhance profitability, lower the price of devices for end users and increase market share.

Table of Contents

  • Introduction
  • Market Trend
    • Personal Device Market Growth Is Flat
      • The Economics of Connections Drives Value for Device Vendors
      • Recurring Revenue Market Models
      • Model 1: Use Direct Subsidies From Ecosystem Partners to Boost Hardware Margins
      • Model 2: Derive Recurring Revenue From Subscription Partnerships
      • Model 3: Collect Transactional Revenue From Advertising Placements and Freemium Models
    • Regional Trend
      • Emerging Market Buyers Access Government and Municipal Portals Through Devices
  • Contrarian View
    • Payment Plans and Subscription Models Lower Acquisition Costs
  • Vendors to Watch
    • Amazon
    • LeEco
    • Centralite
    • People Power
  • Gartner Recommended Reading
© 2017 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

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