Computer Manufacturing

First Research, Inc.
October 20, 2014
10 Pages - SKU: FRRS5360041
Countries covered: United States

Computer Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture computers, such as mainframes, servers, personal computers (PCs), workstations, and mobile PCs (laptops, netbooks, and tablets), as well as computer peripheral equipment, including storage devices, terminals, and input/output devices such as printers, monitors, and keyboards. Major US companies include Canon, Cisco Systems, Dell, Hewlett-Packard, and IBM, all based in the US, along with Foxconn and Quanta (both of Taiwan); Hitachi and Toshiba (Japan); and Lenovo (China).

Worldwide PC shipments, including desktop PCs and laptops (but not tablets), is about 315 billion units, according to Gartner. The vast majority of the world's personal computers are produced in Asia by contract manufacturers, according to IHS iSuppli Research.

The US computer manufacturing industry includes about 1,200 companies with combined annual revenue of about $25 billion.

COMPETITIVE LANDSCAPE

Demand is tied to consumer and business income. The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. Large companies have economies of scale in purchasing and production. Small companies can compete successfully by specializing in certain products or by developing superior technology. The US industry is highly concentrated: the top 50 companies generate about 90 percent of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry's three major product categories are computer peripheral equipment (37 percent of US computer manufacturing revenue), storage devices (34 percent), and computers (28 percent).

Companies typically assemble PCs from components bought from other manufacturers. Key components like "motherboards" are specially made for a...



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