Industry Analysis & Industry Trends
The demand for computers and computer peripherals has grown rapidly due largely to the following: the explosion in digital information and content; the growing demand for technology that enables people to create, store, share and print content; and the rapidly growing demand for information technology in emerging markets of the world.
In 2012, the Global Computer Hardware Manufacturing industry is expected to generate revenue of $585.4 billion (up 2.1% compared with revenue in 2011) and employ almost 3 million people. Personal computer sales represent a major driver of the industry. Worldwide unit PC shipments are expected to grow at an annualized 6.0%.. read more
Starting a New Business
This industry is estimated to have high barriers to entry.
Some incumbents may have built sizable operations, and within some product segments concentration is high. Economies of scale can provide firms with negotiating power in purchasing raw materials, and efficiency benefits in R&D, product development, manufacturing, marketing and distribution.
Brand-owners and, to a lesser extent, original design manufacturers (ODMs), can spend significant amounts on R&D to provide competitive advantages (and, potentially, barriers to competitors). These companies may have also gained market knowledge, and representation and access to offshore and local markets.
Brand names and reputations are not built overnight... read more