industry profile-apple Inc.
Memorandum
PC Industry
The personal computers (PCs) market consists of the sale of both desktop and mobile PCs. The US PCs market has experienced fluctuating levels of decline and low growth in recent years. The US PCs market had total revenues of $41.4bn in 2012, representing a compound annual rate of change (CARC) of 5.0% between 2008 and 2012. Market consumption volume increased with a CAGR of 1.0% between 2008 and 2012, to reach a total of 70.0 million units in 2012. The market's volume is expected to fall to 61.5 million units by the end of 2017, representing a CARC of 2.5% for the 2012-2017 period. Mobile PC sales had the highest volume in the US PCs market in 2012, with total sales of 44.1 million units, equivalent to63.0% of the market's overall volume. In comparison, sales of desktop PC had a volume of 25.9 million units in 2012, equating to 37.0% of the market total. HP is the leading player in the United States PCs market, generating a 26.6% share of the market's volume. Dell accounts for a further 19.2% of the market, and Apple Inc. accounts 12.3% of the market.
Porter’s Five Forces
Porter's Five Forces identifies and analyzes the forces that shape every industry permitting the determination of an industry's weaknesses and strengths. The following paragraphs rank each force for the household products industry as strong, moderate or low.
Buyer (Customer) Power: Moderate
Buyer power relates to the relative number of buyers in an industry and the leverage buyers have with respect to price. Buyers with strong bargaining power can extract price concessions and demand a higher level of service and delayed payment terms. Lower buyer power is better for the firm. There is limited product differentiation within this market, in terms of technical specification. This tends to increase buyer power. Although brand awareness is high, customers tend to be more interested in the quality and specifications of individual products, and customer loyalty is
PC Industry
The personal computers (PCs) market consists of the sale of both desktop and mobile PCs. The US PCs market has experienced fluctuating levels of decline and low growth in recent years. The US PCs market had total revenues of $41.4bn in 2012, representing a compound annual rate of change (CARC) of 5.0% between 2008 and 2012. Market consumption volume increased with a CAGR of 1.0% between 2008 and 2012, to reach a total of 70.0 million units in 2012. The market's volume is expected to fall to 61.5 million units by the end of 2017, representing a CARC of 2.5% for the 2012-2017 period. Mobile PC sales had the highest volume in the US PCs market in 2012, with total sales of 44.1 million units, equivalent to63.0% of the market's overall volume. In comparison, sales of desktop PC had a volume of 25.9 million units in 2012, equating to 37.0% of the market total. HP is the leading player in the United States PCs market, generating a 26.6% share of the market's volume. Dell accounts for a further 19.2% of the market, and Apple Inc. accounts 12.3% of the market.
Porter’s Five Forces
Porter's Five Forces identifies and analyzes the forces that shape every industry permitting the determination of an industry's weaknesses and strengths. The following paragraphs rank each force for the household products industry as strong, moderate or low.
Buyer (Customer) Power: Moderate
Buyer power relates to the relative number of buyers in an industry and the leverage buyers have with respect to price. Buyers with strong bargaining power can extract price concessions and demand a higher level of service and delayed payment terms. Lower buyer power is better for the firm. There is limited product differentiation within this market, in terms of technical specification. This tends to increase buyer power. Although brand awareness is high, customers tend to be more interested in the quality and specifications of individual products, and customer loyalty is