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 Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation 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
Recent Developments
Mar 3, 2023 - PC Shipments Decrease
- PC shipments decreased 16.2% year over year in 2022, according to research firm Gartner. “The anticipation of a global recession, increased inflation and higher interest rates have had a major impact on PC demand,” said Mikako Kitagawa, Director Analyst at Gartner. “Since many consumers already have relatively new PCs that were purchased during the pandemic, a lack of affordability is superseding any motivation to buy, causing consumer PC demand to drop to its lowest level in years.”
- Industry giant Dell Technologies plans to stop using China-made semiconductors by 2024, according to the Reuters news service. The company has also urged its suppliers to reduce the number of components sourced from that country amid concerns over escalating tensions between Beijing and Washington. Dell is also expected to move about 50% of its production out of China by 2025, according to a separate report by Taiwanese financial newspaper Commercial Times.
- IT industry giant Apple will require its suppliers to report progress on carbon neutrality goals, specifically Scope 1 and Scope 2 emissions reductions, related to the production of Apple products and will audit their progress annually. The company is also encouraging suppliers to address the greenhouse gas emissions beyond what they produce for Apple. The company says that it has sourced renewable energy to power all of its corporate offices, retail stores, and data centers in 44 countries since 2018, and its suppliers have brought more than 10 gigawatts of clean power online around the world.
- President Biden signed an executive order that is intended to quickly increase domestic production of semiconductors, strengthen semiconductor research, and extend US semiconductor design leadership. The order, which follows the signing of the $280-billion CHIPS and Science Act into law, will establish a 16-member implementation steering council made up of cabinet secretaries and top White House officials from across Biden's national security and economic teams. The order also details Biden's six priorities for implementing the Chips and Science Act in the months ahead. Details include a series of factors that should guide the timely development and oversight of the private sector relationships required for the allocation of funding that is meant to enhance long-term economic and national security by increasing domestic chip manufacturing. The CHIPS and Science Act is a scaled-down version of previous bills. It includes more than $52 billion for US chipmakers as well as tax credits for domestic factories but isn't expected to affect production in the short term. Experts note that it will take companies years to build new factories and otherwise upgrade facilities to tackle chip shortages and increase manufacturing independence. The CHIPS and Science Act is a scaled-down version of previous bills. It includes more than $52 billion for US chipmakers as well as tax credits for domestic factories but isn't expected to affect production in the short term. Experts note that it will take companies years to build new factories and otherwise upgrade facilities to tackle chip shortages and increase manufacturing independence.
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