Industry Analysis & Industry Trends
All systems down
Despite growing consumer demand for PCs and tablets, industry profit will continue to fall because of intense price competition. To boost profitability, manufacturers will shift their focus away from consumer PC sales to more enterprise-oriented offerings, such as servers. The proliferation of cloud computing will prompt companies to increase their server investments. However, heightened competition and falling prices will cause revenue to continue plunging... purchase to read more
Industry Report - Industry Investment Chapter
The Computer Manufacturing industry has a high level of capital intensity. While manufacturers only spend slightly more on employees' wages than on ongoing capital expenses, both expenditures are very minor cost components for operators; this industry is highly capital intensive in relative terms, but the absolute level of investment is low. An estimated $0.57 is allocated toward capital expenses for every dollar spent on labor. Workers in an assembly line process typically do computer assembly manually; while automation is technically feasible, the cost savings would be minor. Computer manufacturers do not actually produce computer components (see IBISWorld report 33441a Semiconductor and Circuit Manufacturing), which is the most capital-intensive activity in the supply chain... purchase to read more