The laptop industry is evident that technology in our world today is becoming more advance. Since its increase in demand, laptops are becoming more personal and convenient to the needs of its owner by offering different selections of color, style, and internal hardware. Laptops are becoming more popular in households, businesses, and everyday lives. This analysis will describe growth rates, suppliers, competition, and customers and how they contribute to the industry of laptops. Industry Specific Technology is constantly changing. The 1st laptop was introduced in 1981 by the Osborne Computer Corporation.
This technological phenomenon changed the way we would use computers forever. For the price of 1800 dollars, you could own an Osborne 1 laptop. It included about an additional 1500 dollars worth of programs such as WordStar word processing, spreadsheet software, Microsoft MBASIC programming language, etc. It weighed about 24 and a half pounds and also included a protective case. In 1991, the Apple Company introduced its version of the laptop. The Apple PowerBook was portable, which included a palm rest and pointing device that became standard for future laptop designs (Carey, Dachary).
A major change to the laptop industry was the release of Windows 95 in 1995. Windows 95 became the default operating system for non-Apple laptops. The release of Windows 95 stabilized several features of laptop design, and brought about the creation of the style of laptops we know today. (Carey, Dachary). As shown in table 1. 4, the amount of shipments, imports, exports, and annual growth has changed over the past few years. Important industry statistics related to the laptop industry would be income and demand.
These statistics are important because the purchasing consumer has to be able to afford the product and additional accessories for the computer. The American economy is becoming better so that when consumers are more comfortable with making a more expensive purchase there will not be as much pressure on the buyer. The North American Industrial Classification System (NAICS) codes the laptop industry as Electronic Computer Manufacturing with a number code of 334111. The laptop industry does not have a trade association. Major Competition
The laptop industry dominated mainly by the five top competitors Hewlett-Packard (HP), Dell, Acer, Lenovo and Toshiba. Collectively these companies represent about 60% of the entire industry based on the shipping rates (ComputerWorld). As seen on table 1. 1, Hewlett Packard has been leading the PC company over the past couple of years. Hewlett Packard is a leading company because it caters to the need of its many customers. It provides service to businesses, government agencies, consumers, and schools in more than 170 countries which proves why it is the top company in its industry (YahooFinance).
Although the Apple Corporation has been around for some time now, they are slowly coming up on the top brands list. They are ranked in the top ten, but with the positive reputation that came with the reinvention of the “iPod” and products like the “iPhone” and newly released “iPad” Apple customers are happier than ever. This reputation is making it easier for Apple to stay in the market and increase it sales. The Apple Company released that it has had record numbers in this past quarter alone. Also, records show that the majority of Apple’s customers are older and their income is higher (Table 1. 2) as of 2008.
Even the of individuals with a four year degree has a different brand preference (Table 1. 3). | Supply Chain A significant portion of the world’s PCs and PC components are manufactured by Taiwanese Manufacturers (ODMs) headquartered in Taiwan, but who manufacture in China (William Foster). The suppliers for all competitors are quite limited in terms of bargaining power due to increased commoditization of hardware components. Intel and AMD, the two major microprocessor suppliers, compete for increased market share. However, their power is limited due to their need for product promotion among consumers.
For hardware such as hard drives (Samsung, Western Digital, Seagate, etc. ) or motherboards (Intel, MSI, ASUSTek, etc. ) there is very limited bargaining power due to their lack of branding on the finished product. Most manufacturers use different suppliers for the same component, by sourcing their requirements from whoever is cheaper at that time. Thus, if the prices are not competitive, the suppliers risk losing out to their rivals (Aditya Shah, Abhinav Dalal). Customers Customers have large bargaining power over manufacturers, since a major part of the total PC sales is made up of large volume buying from businesses.
In addition, consumers also have bargaining power in terms of dictating demand and buying preferences (Aditya Shah, Abhinav Dalal). Institutions, government agencies, and corporations all purchase laptops to assist with their daily business operations. When purchasing any laptop, one main criteria that companies look for is the overall use of the computer. If the laptop computer is the only computer source that the company has, then the company would want to have more memory stored onto the computer.
This additional memory would cause the computer to cost more so the quantity may be lower than a lower quality laptop computer. Ending consumers would be unable to produce the computers due to specific chemicals and raw materials that make up the finished product, In conclusion, the laptop industry is constantly changing . With the American economy rising, the sales of laptops are going to increase as more companies and industries want to stay up to speed with our advanced technology. Every year there is a complex change to the laptop( Aditya Shah, Abhinav Dalal).