Click away: Wholesale bypass will suppress industry revenue growth despite high demand

While demand for computers and related equipment has grown considerably over the five years to 2017, computer wholesalers have endured increasing price competition and a shift by manufacturers toward direct sales models. Although private investment in computers and software has increased, the price of computers and peripheral equipment has decreased substantially during the same period. Declines in the cost of computing power have led to a proliferation of new computing products. The Computer and Packaged Software Wholesaling industry is expected to continue its gradual decline over the next five years...purchase to read more.

Industry Statistics & Market Size
Revenue
$307bn
Annual Growth 12-17
-0.8%
Forecast Growth 17-22
Profit
Employment
190,322
Businesses
10,506
Market Share of Companies

Industry Threats & Opportunities

  • Industry players have sought ways to cut costs and counteract revenue lost as a result of wholesale bypass
  • Wholesalers have been adversely affected by the adoption of direct sales models
  • Demand from businesses will offset some of the contraction in the consumer market
  • Industry Report - Industry Analysis Chapter

    While demand for computers and related equipment has grown considerably over the five years to 2017, operators in the Computer and Packaged Software Wholesaling industry have endured increasing price competition and a shift by manufacturers toward direct sales models. Although private investment in computers and software has increased, the price of computers and peripheral equipment has decreased substantially during the same period. Wholesalers have had to pass these lower costs onto their own customers, which has eroded revenue in the industry. Over the five years to 2017, industry revenue is expected to decline at an annualized rate of 0.8% to $306.9 billion, despite growth of 1.6% projected over 2017 alone...purchase to read more.

    Additional Insights for the Computer & Packaged Software Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Computer & Packaged Software Wholesaling Industry are

  • Ability to control stock on hand
  • Economies of scope
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Private investment in computers and software and External competition for the Computer and Packaged Software Wholesaling industry in the Computer & Packaged Software Wholesaling industry impact industry performance..

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    What's in this report

    What is the Computer & Packaged Software Wholesaling Industry?

    This industry comprises establishments primarily engaged in wholesaling computers, computer peripheral equipment, loaded computer boards and computer software. Manufacturers’ sales branches and offices with wholesale functions are included within this industry.

    Industry Products
  • Computers
  • Computer storage devices
  • Computer printers
  • Software
  • Other computer peripheral equipment
  • Services
  • Industry Activities
  • Computer peripheral equipment wholesaling
  • Packaged computer software wholesaling
  • Computers wholesaling
  • Computer disk drive wholesaling
  • Loaded computer board wholesaling
  • Computer motherboard wholesaling
  • Computer printer wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Private investment in computers and software
  • External competition for the Computer and Packaged Software Wholesaling industry
  • Per capita disposable income
  • Price of computers and peripheral equipment
  • Corporate profit

  • Current Performance
  • Innovation hurts industry
  • Structural changes
  • Profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Product and service shifts
  • Direct sales models
  • Table: Computer & Packaged Software Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Computer & Packaged Software Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Computer & Packaged Software Wholesaling
  • Computer Stores
  • Department Stores
  • Consumers

  • Key Selling Industries
  • Computer & Packaged Software Wholesaling
  • Computer Manufacturing
  • Computer Peripheral Manufacturing
  • Software Publishing

  • Products & Services
  • Computers
  • Computer storage devices
  • Other
  • Software
  • Other computer peripheral equipment
  • Computer printers
  • Services
  • Chart: Computer & Packaged Software Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Business end-users
  • Other wholesalers
  • Retailers
  • Government agencies
  • All others
  • Chart: Major Market Segmentation for the Computer & Packaged Software Wholesaling 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 & Packaged Software Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Computer & Packaged Software Wholesaling Industry

  • Industry Globalization
    Ingram Micro Inc.,
  • Table: Ingram Micro Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Computer & Packaged Software Wholesaling 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 & Packaged Software Wholesaling Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Private investment in computers and software (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Bring Your Own Device
  • A policy allowing and sometimes encouraging employees to bring their own computing devices to the workplace for use and connectivity on the corporate network.
  • Data Storage
  • Computer devices and recording media that retain digital data. Often called "memory."
  • Packaged Software
  • Commercial application programs developed to meet the needs of a variety of users, rather than custom-designed for a specific user or company. Packaged, or boxed, software is normally put on disks.
  • Server
  • Computer models intended for running software applications under the heavy demand of a network environment.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Computer & Packaged Software Wholesaling is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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 & Packaged Software Wholesaling:
    • 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 & Packaged Software Wholesaling 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 & Packaged Software Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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