BUSMHR 4490
PC Industry Overview
The personal computer industry, like many industries before it, has undergone drastic changes and innovations since the first PC was introduced. These changes and innovations are necessary to keep up with the always shifting and uncertain market conditions. While a lot of discovering, inventing, and tinkering was being done in the PC industry in the middle to late 20th century, it wasn't until the late 1970s that Apple pioneered the first useable "personal" computing devices.
Since the emergence of PCs primarily as desktops in the 80s and 90s, the industry has seen product expansion & innovation, in the form of laptops, notebooks, and net books. Growth was increased by lowered prices and expanding technology and the industry roared through the early 2000s. 2010 saw the arrival of the iPad which gained significant ground for tablets which actually have been in the PC market since the 80s. In 2011 came another category of laptops called Ultra books which were ultra-thin, lightweight, and high-performance. It has yet to be seen how the market will shift again in coming years based on new innovations as well as substitutes like smartphones.
So just how competitive has the PC industry been globally over the years? The total shipments (in millions) by PC manufactures from 2000 to 2011 have increased greatly. In 2000, we saw total shipments of PCs increase from 128.5M to 352.4M in 2011. That is a 174.2% growth over that time span. Worldwide PC revenue has increased in that same period from $251 billion in 2000 to $329 billion in 2011. With the PC industry expected to grow as new innovations and products come along, the 2015 estimate in global revenue for the industry is around $383 billion.
On the surface, these numbers look very attractive and appealing to potential competitors. But, it's important to take in account the costs the industry incur and how revenue and volume growth have slowed down. The PC industry is