Computer Manufacturing Industry Profile

Companies in this industry manufacture computers, such as mainframes, servers, personal computers (PCs), workstations, and mobile PCs (laptops, netbooks, and tablets), as well as computer peripheral equipment, including storage devices, terminals, and input/output devices such as printers, monitors, and keyboards. Major US companies include Dell, Hewlett-Packard, and IBM, all based in the US, along with Foxconn and Quanta (both of Taiwan); Hitachi, Toshiba, and NEC (Japan); and Lenovo (China).

Worldwide revenue for PC servers, desktop PCs, and mobile PCs combined exceeds $370 billion, according to Computer Industry Almanac. The vast majority of the world's personal computers are produced in Asia by contract manufacturers, according to IHS iSuppli Research.

The US computer manufacturing industry includes about 1,200 companies with combined annual revenue of about $30 billion. The industry is expected to grow at a low rate in the next two years. Competition from imports is a major challenge.

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

The three major product categories -- computer peripheral equipment, storage devices, and computers -- each account for about one-third of ...