Sierra Nevada Corp. - Competitors

Sierra Nevada Corp. Competition

Now Viewing Sierra Nevada Corp.'s competition in: Computer Manufacture (primary)

Recent Developments

Server Revenues Increase - Top makers of servers grew worldwide revenue in second quarter 2008 compared to the same period in 2007, according to Gartner, Inc. Overall, server revenue grew 6 percent in second quarter, lifted largely by data center spending and growth in emerging markets. Dell saw the largest rise in server revenue with an increase of 15 percent; IBM had gains of about 11.5 percent. Fujitsu Siemens Computers' revenues were stagnant, while those of Sun Microsystems dropped 7 percent.

Hewlett-Packard Completes Purchase of EDS - Hewlett-Packard (HP) completed its $13.9 billion acquisition of IT services giant Electronic Data Systems (EDS). The deal makes HP the second-largest provider of outsourced IT and business services after IBM. HP plans to combine its existing Technology Solutions Group with EDS; the two companies had service revenue in 2007 of about $38 billion. Prior to buying EDS, HP had trouble growing its services operations organically.

Apple Leads in Customer Satisfaction - In a recent survey, Apple bested its competitors on customer satisfaction. Of people who recently bought an Apple product, 81 percent report being "very satisfied," versus only 58 percent of Dell and 55 percent of HP customers, according to a survey by RBC Capital Markets and ChangeWave Research. The survey also suggests that consumer spending on electronics is near record lows: only 15 percent plan to spend more in the next 90 days; 34 percent say they'll spend less.

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 capital-intensive and highly automated: annual revenue per employee is about $500,000.

Full Industry Overview For Computer Manufacture

Computer Manufacture Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US computer manufacturing is forecast to grow at an annual compounded rate of 3.9 percent between 2007 and 2012.

Computer Output Growth Peaks then Stabilizes

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.