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 2021 exceeded 340 million units, 15% higher than the year prior, according to Canalys. Europe, Middle East, and Africa region together with Asia Pacific, excluding Japan, led the growth with significant shipments.

The US computer manufacturing industry includes about 1,000 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 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.

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