Computer Manufacturing Industry Overview

Excerpt from Computer Manufacturing Report

Companies in this industry manufacture computers, such as mainframes, personal computers, workstations, laptops, and computer servers; and computer peripheral equipment, such as storage devices, printers, monitors, input/output devices, and terminals. Major companies include US firms Dell, Hewlett-Packard, and IBM; and Asian companies Toshiba Corporation (Japan), Lenovo (China), and Foxconn (a division of Taiwan-based Hon Hai Precision Industry).

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 industry is highly concentrated: the top 50 companies generate about 90 percent of revenue.

Products, Operations & Technology

Major products include PCs, printers, monitors, mainframes, servers, and disk drives. Personal computers account for about 40 percent of industry revenue; mainframes and servers, 13 percent; and storage devices, about 10 percent.