Total Cost Of Failure !

I was recently party to a discussion between Panasonic and a large corporate customer. Some of the insights I gained were fascinating. I nabbed a copy of the PowerPoint, so I can share some of the knowledge …. (some figures are in USD but don’t let that put you off, it’s the message that is so important when making your Hardware decisions)

IDC estimates the average cost associated with repairs as –

  • Notebooks $3411 – Average failure rates 19%
  • Tablets $2462 – Average Failure rates 15%
  • Handhelds $3087 – Average failure rates 14%

Device Build quality has suffered due to increased price competition, to the point some devices are now even glued together!

For example, Lenovo reported a 21% failure rate across their range, Apple has a 9-10% failure rate. Even GETAC is reported to be around 11% but Panasonic failure rate is under 5% (below 2% on the FZ-G1 Tablet) !!

The costs are calculated considering IT time to replace apps and data, end-user time to reconfigure, IT time to fix. The amount the organization must spend on IT staff salaries to manage, track, and (in many cases) implement the necessary repairs. Lost user productivity whilst the device is out of commission. Out-of-pocket costs: Costs not covered by break/fix agreements or that must otherwise be covered by the organization and Annual break/fix support costs. Out of warranty costs are even higher!

Below is a graphic showing the actual average cost of repairs to your business…

Save now pay later

Below graphic shows you how a more expensive device will actually save you money …

Save money by buying the best.

And now some monetary figures to get your teeth into – Based on 1000 devices.

  • Non-Panasonic – 950 failures x £2,660 = £2.53M
  • Panasonic – 200 failures x £2,660 =  £530K


  • Total cost of Non-Panasonic Hardware (£1000 per unit) = £1M
  • Total cost of Panasonic hardware (£1500 per unit) = £1.5M


  • Non-Panasonic total lifetime cost = £3.53M
  • Panasonic total lifetime cost = £2.03M


Panasonic Toughbook has the lowest industry failure rates in mobile computing by a long way. A 1% increase in device failure rates equates to a 5% increase in your total cost of ownership! Toughbook is purpose-built, with reliability and productivity in mind that vastly increases your ROI and reduces the overall TCO.

So hopefully you can see from all this data, it does make great economic sense to buy the right device first time.

You can even ease the cost burden by leasing the device through us over 3 or 5 years. Add accidental damage cover and you rest assured you will not have any nasty surprises!