Battery low: Offshoring activity and intense import competition will inhibit revenue

The Computer Manufacturing industry has declined over the past five years, as the domestic market has become saturated. High import competition, exacerbated by an appreciating US dollar and advances in substitute technology have caused fierce price competition in the industry. This, in addition to decreasing input costs has hindered the industry's revenue growth over the five years to 2017. Nonetheless, industry revenue and profit are expected to endure slow growth over the next five years, as demand for computers is anticipated to continue to increase in tandem with levels of standardization and price competition increasing...purchase to read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 12-17
-1.0%
Forecast Growth 17-22
Profit
Employment
10,508
Businesses
394

Industry Threats & Opportunities

  • High import competition and advances in substitute technology have caused fierce price competition
  • Computers are increasingly being assembled with standardized components
  • Major computer manufacturers will continue to produce computers abroad
  • Industry Report - Industry Analysis Chapter

    Over the five years to 2017, aggressive competition has made computer manufacturing an increasingly standardized industry, causing product prices to decrease and limiting revenue potential. Subsequently, many industry operators have moved production activity overseas to take advantage of lower labor and production costs and compete with foreign manufacturers. Additionally, consumer markets for computers in the United States, Japan and Western Europe are approaching saturation, leading to less reliable demand. Consequently, revenue for the Computer Manufacturing industry has declined at an annualized rate of 1.0% over the past five years to $10.4 billion, though a mild increase in portable computer shipments in the United States in 2014 tempered the decline represented by that figure. How...purchase to read more.

    Additional Insights for the Computer Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Computer Manufacturing Industry are

  • Ability to quickly adopt new technology
  • Effective advertising and branding
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Import penetration into the manufacturing sector and Price of computers and peripheral equipment in the Computer Manufacturing industry impact industry performance..

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    What's in this report

    What is the Computer Manufacturing Industry?

    Companies in this industry manufacture and assemble personal computers, laptops and servers. Operators typically purchase computer components (e.g. motherboards and graphics cards) from dedicated manufacturers in other industries, such as semiconductor and circuit manufacturing (IBISWorld report 33441a). This industry does not include tablet computers or manufacturers of computer monitors, mice, keyboards and printers (33411b).

    Industry Products
  • Desktop computers
  • Portable computers
  • Servers
  • Industry Activities
  • Personal computer
  • Laptop
  • Desktop
  • Server
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Import penetration into the manufacturing sector
  • Price of computers and peripheral equipment
  • Demand from data processing and hosting services
  • Trade-weighted index
  • Consumer Confidence Index
  • Corporate profit

  • Current Performance
  • The globalization of production
  • Lower prices limit growth further
  • Portability preferred
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry trends
  • Lower prices limit growth further
  • Table: Computer Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Computer Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Information
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Semiconductor & Circuit Manufacturing
  • Wire & Cable Manufacturing

  • Products & Services
  • Portable computers
  • Servers
  • Desktop computers
  • Other
  • Chart: Computer Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Businesses
  • Consumers
  • Public organizations
  • Chart: Major Market Segmentation for the Computer Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Computer Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Computer Manufacturing Industry

  • Industry Globalization
    International Business Machines Corp., HP Inc., Dell Inc.,
  • Table: International Business Machines Corp. - financial performance
  • Table: HP Inc. - financial performance
  • Table: Dell Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Computer Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Computer Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Price of Computers and Peripheral Equipment (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Cloud Computing
  • Web-based processing that provides resources, software and information to computers and other devices on demand over the internet.
  • Open Source
  • A licensing system that makes software source code available to the public to use, or develop further, at no charge.
  • Smartphone
  • A mobile phone that offers advanced PC-like capabilities.
  • Tablet Pc
  • A portable computer with a touch screen as the primary input device.
  • Virtualization
  • Emerging technology that enables one computer to seamlessly use the resources of another over a network connection.
  • What Our Customers Say

    Why buy this report?

    The Computer Manufacturing industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Computer Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Computer Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Computer Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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