INDUSTRY ANALYSIS:THE COMPUTE
The computer industry is capital intensive and technologically driven and can be divided into three main segments; the supercomputer, mainframe, and personal computer. There have been several factors that have impacted the computer industry, but none like the Internet. The Internet has helped to develop the growth in the PC segment, which is currently the most popular mechanism for gaining access to the Internet. As we enter the paperless age, people now do their banking, payment of bills, shopping, and communicating via email and video conferencing which is all done through their PCs. This new technology shifted the demand for PCs to the right as people wanted access to the new superhighway. Although the new demand increased revenue for several of the companies in the industry, it also attracted new entrants, which in turn lowered PC prices and began a decrease in economic profits. This, in turn, led many computer manufacturers to look for less expensive parts, which drove many of the component suppliers to move their manufacturing operations overseas in search of a cheaper labor force. The server segment, once a high margin market, is also becoming more compet
Now, the microchip industry supplies microchips to cell phone companies and other electronic device companies. DEMOGRAPHICS OF THE UNITED STATES - 1990 THROUGH 2001DEMOGRAPHIC AREA 1990 (in millions) 2001 (in millions) PERCENT OF INCREASETOTAL POPULATION 248. In 1999 imports surpassed exports by almost 2 billion dollars and the year 2000 continued to show strong imports, while exports showed only a slight increase. Specifically, daily newspaper circulation dropped 11. Now, there are dozens of PC makers around the world. Without the computer industry, most of its suppliers of components and parts would not exist. Computer industry profit margins are averaging approximately 6% for 2003 for the top five firms, and as long as there are economic profits, more firms will enter. Microchips can be used to interact with satellites to locate an exact position on earth, similar to a Global Positioning System (GPS). Introduction of the Internet: Another very important force in driving up the sales of PCs was the introduction of the Internet. Trends and Growth of Firms Within the Industry: The general trend of U. 2002 MARKET SHARE AND UNITS SOLD OF TOP COMPANIES IN THE UNITED STATESCOMPANY UNITS SOLD (in millions) 2002 REVENUE(in millions) MARKET SHAREDell, Inc.
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