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
                                  Source: Vertical IQ and Inforum

                                  Coronavirus Update

                                  May 9, 2022 - Semiconductor Industry Funding Proposals Advance Slowly
                                  • Legislation introduced in 2021 to boost domestic semiconductor production continues moving through the US Congress. The House-passed America COMPETES Act has been merged with the Senate-passed United States Innovation and Competition Act (USICA), creating the “Bipartisan Innovation Act” (BIA). The combined legislation includes a $52-billion proposal for building US-based semiconductor foundries. Most lawmakers agree that the BIA must be passed and advanced to the White House by the end of the summer, before lawmakers turn their attention to the November midterm congressional elections. Gartner analyst Gaurav Gupta said in early April that investments will need to continue to be made to support the US semiconductor industry beyond the initial $52 billion.
                                  • Some US firms such as Intel Corp and Micron Technology still make chips onshore, but the industry's center of gravity has shifted to Asia, according to the CNBC news network. American companies secured 45% of the global semiconductor market in 2019, according to the Semiconductor Industry Association.
                                  • Vietnamese factories making everything from shoes through electronic components to smartphones are expected to continue production despite record COVID-19 infections, reversing a policy of sweeping lockdowns put in place in 2021. The number of COVID-19 infections being reported in Vietnam in mid-February was about double the peak at the same time in 2021, when factories were shut for months. Millions of factory workers have been fully vaccinated and the Omicron variant is proving less severe, government officials said.
                                  • The semiconductor shortage will not be as severe in 2022 as it was in 2020 and 2021, according to Ariane Bucaille of consulting firm Deloitte. The shortage will also not affect all chip varieties. Customers were waiting between 20 and 52 weeks in mid-2021 for multiple kinds of semiconductors, according to Bicaille. Those lead times will be closer to 10-20 weeks by the end of 2022, and the industry will be in balance by early 2023.
                                  • Employment in the computer and peripheral manufacturing industry increased 1.9% year over year in March, according to the US Bureau of Labor Statistics.
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