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Computer Manufacturing

10 Pages First Research, Inc. April 20, 2015 SKU: FRRS5534157

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 Apple, 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).

Annual worldwide PC shipments, including desktop PCs and laptops (but not tablets), total about 320 million 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 1,100 companies with combined annual revenue of about $30 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 computers (PCs, servers, mainframes), storage devices (optical and hard disk drives, tape storage), and peripheral equipment (ATMs, PC peripherals, point-of-sale devices), each of which accounts for about a third of US industry revenue.

Companies typically assemble PCs from...

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Computer Manufacturing

First Research, Inc.
April 20, 2015

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