Computer Manufacturing Industry Profile

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).

Annual worldwide units sold for 2023 totaled about 240 million units, about 15% lower than the year prior, according to Gartner. China, Mexico, Hong Kong, and the US were some of the top exporters of computer devices, according to Worlds Top Exports.

The US computer manufacturing industry includes about 950 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $20 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 50 largest firms generate more than 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry's major product categories are host computers accounting for about 30% of the industry's revenues, followed by computer storage devices (about 25%). Other products include miscellaneous computer peripherals, accessories for computer peripherals, and computer parts.

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