Computer Manufacturing

Computer Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacturing electronic computers, such as mainframes, personal computers, workstations, laptops, and computer services, as well as computer peripheral equipment. Major companies include US-based Apple, Dell, Hewlett Packard Enterprise, and IBM, as well as ASUS (Taiwan), Canon (Japan), and Lenovo (Hong Kong).

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 50 largest firms generate more than 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry's major product categories are computers (PCs, servers, mainframes), storage devices, and peripheral equipment (ATMs and point-of-sale devices). Electronic computers account for 45% of industry revenue, while computer storage devices and computer terminal and other peripheral equipment account for about 30% each.