Economic features (Computer Market)
o Size: $800 billion worldwide
o The US market is controlled by five main companies, Dell, HP, Gateway, IBM and Apple. These companies control 64% of the US market and 40% of the international market. Apple only controls 2% of the international market. The markets have experience a substantial growth in recent years but are predicted to slow down to 8% unit sales growth from 2006 to 2009 in the US and European markets while continuing to grow in Asia. The PC industry has its 10th consecutive quarter of double digit growth (2005)
o In 2005 Apple had approximately $13.9 billion in sales with about $6 billion of that coming from computers and almost $4.5 billion from the sales of iPods.
o The need of the buyers is changing. Consumers are now looking for customized personal computers that can be taken anywhere and are moving away from the standard desktop computer. Need for mobility, consistent access and reliability are becoming more and more important for the consumer. As long as Apple is able to keep up with buyers demands they will continue in their market growth.
o There are five main competitors in the market that are each trying to differentiate themselves and create their market niche. Dell, which is the industry leader, had a net revenue of $50 billion in 2005. 40% of that revenue came from the sale of desktop computers. HP’s biggest revenue producers are its accessories, servers, and consulting services. Its Personal Systems Group made up for half of its net revenue growth between 2003 and 2004. Gateway was able to originally set itself apart by selling its products through proprietary stores that allowed customers to test out the products but by 2004 they had done away with this service.
o The main difference between Apple and the PC’s is the operating systems. Technological advances are allowing computers to work faster, have more memory, and provide... [continues]
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