|Last Quarterly Update:||3/13/2017|
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Companies in this industry produce desktop personal computers (PCs) and portable PCs such as laptops, notebooks, and tablets. Major US companies include Apple, Dell, and HP; major companies based outside the US include Acer Group (Taiwan), Lenovo (Hong Kong), and Toshiba (Japan), as well as Taiwan's Hon Hai Precision (doing business as Foxconn). Though PC companies in the US are commonly referred to as manufacturers, most PC manufacturing is conducted offshore.
Global PC sales growth has been hindered by competition from mobile devices, especially in emerging markets. Worldwide PC sales dropped below 300 million units in 2015, according to Gartner. PC shipments are expected to decline an additional 1% in 2016, according to the IT advisory firm.
US PC shipments account for about 20% of the worldwide market, according to Gartner. Related products such as servers and mainframes -- in addition to PCs -- are included in the more expansive Computer Manufacturing profile.
Demand in the PC market is driven by technological advances, disposable income in the consumer market, and corporate spending cycles. The profitability of individual companies depends on supply chain efficiency and ancillary products and services. Large companies have advantages in leveraging extensive marketing budgets and sales channels, securing component discounts, and manufacturing efficiencies. Small companies can compete by offering unique products or localized service and support. The US PC manufacturing industry is highly concentrated: the top 50 ...
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