Gartner Research

Market Trends: Selling Hardware in the Application and Service-Driven Market

Published: 10 June 2014

ID: G00262689

Analyst(s): Sandy Shen , Tracy Tsai


Better hardware alone is not enough to drive sales. Device providers need to align product design with applications and services that can learn users' behaviors and preferences to offer a more intelligent experience, attracting users with a differentiated value beyond hardware.

Table Of Contents


  • From Personal Cloud to Cognizant Computing, Devices Become Smarter

Market Trend

  • Expanding Ecosystems by Partnering With Cross-Industry Players
  • Searching for the Next New Hardware
    • Commercial Market
    • Consumer Market
  • Augment Hardware With Intelligent Apps and Services
    • Sync Me
    • See Me
    • Know Me
    • Be Me
  • Hardware Vendors' Assets for Cognizant Computing
  • Three Major Types of Cognizant Computing Service Providers
  • Adjustments Required to Build an Application-Driven Hardware
  • Three Major Ways to Monetize Cognizant Computing

Contrarian View

  • Application and Service Will Not Impact the Hardware If a New Standard Hardware Has Size of Volume, Revenue and Growth Big Enough for Most Hardware Vendors in the Next Few Years

Vendors to Watch

  • Alibaba Group
  • Amazon
  • Apple
  • Google
  • Nokia
  • Tencent

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