Computer & Peripheral Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 880 computer and peripheral equipment manufacturers in the US produce and assemble a wide range of computing equipment including computers, storage devices, terminals, and other peripherals. In addition to selling equipment, companies may sell software and installation, consulting, or IT management services.
Short Product Life Cycle
Computers and peripherals have a short product life cycle due to rapid advances in technology and evolving industry standards.
Price-Based Competition
As the computer and peripheral markets begin to mature domestically, growth has slowed, resulting in intense price competition.
Industry size & Structure
A typical computer manufacturer employs about 52 workers and generates $29 million annually, while a typical storage device manufacturer employs 77 workers and generates about $68 million annually.
- A typical peripheral manufacturer employs about 36 workers and generates about $12 million annually.
- The computer and peripheral manufacturing industry consists of about 880 companies that employ about 162,200 workers and generate $21 billion in sales.
- The computer and peripheral manufacturing industry is concentrated - the 50 largest companies hold just over 80% of industry sales.
- Large companies include Hewlett-Packard, Dell Technologies World, Cisco, Xerox and Lexmark.
Industry Forecast
Computer & Peripheral Manufacturers Industry Growth
Coronavirus Update
Oct 3, 2021 - Semiconductor Shortage may Last Into 2022
- About 5% of semiconductor manufacturers surveyed by IPC said that they expect the semiconductor shortage to be over by the end of 2021. About 58% said that the shortage will last until at least the second half of 2022.
- About 80% of chip makers say that it's become hard to find workers, many of whom have to be specially trained to handle the highly toxic compounds used in semiconductor manufacturing. The problem is worse in North America and in Asia, where more companies are reporting rising labor costs compared to those in Europe.
- Consumers are paying more for computers and printers due to pandemic-related component shortages, according to the consumer news organization Consumer Affairs. Hewlett Packard PC prices, for example, are up 8% year-over-year, and printer prices have risen by at least twice that. HP CEO Enrique Lores said that higher prices resulting from component shortages may not end any time soon.
- Federal lawmakers are developing a $52 billion proposal to boost US semiconductor chip production and research, according to Reuters news service. Computer and peripheral manufacturers are likely to benefit from expansion of the industry in the US. The draft is said to include $39 billion in production and R&D incentives and $10.5 billion to develop the National Semiconductor Technology Center, National Advanced Packaging Manufacturing Program, and other R&D programs. The proposal is expected to be included in a larger legislative proposal to spend more than $110 billion on basic US and advanced technology research to better compete with China.
- Gartner predicts worldwide smartphone sales to end users will rebound to pre-pandemic levels in 2021, thanks largely to delayed purchases of 5G devices.
- Computer and peripheral manufacturing industry employment increased 2.5% year over year in August, according to the US Bureau of Labor Statistics.
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