Industry structure of computers
Industry Structure
The industry structure of the computer manufacturing market consists of two predominant devices, the desktop computer and the tablet. These markets, while the products are similar, are dominated by different companies but both are consolidated because a “big 5” set of competitors contribute to a majority of the market share.
Tablet Market
The tablet market in very consolidated, containing only a small number of very powerful firms that are all gaining solid ground as viable competitors. A few years ago Apple virtually dominated the market when tablets were first introduced but as business goes, competitors will not follow very far behind. This showed as companies like Samsung and Windows started to flood the market with other companies as well. Although Apple still is the majority market share holder of tablets this will very soon not be the case.
The nature of the industry is very intense because technological advances happen practically every day. The speed of processors, visual quality, ease of access and security are aspects that these devices experience with every operating system update and product launch.
At the end of the 2nd quarter of 2013, the tablet market was controlled by 5 major companies; Apple at 32.5%, Samsung at 18%, ASUS at 4.5%, Lenovo at 3.3% and Acer at 3.1%, all of which control 61.2% of the entire industry. When considering the Operating Systems of tablet devices, 3 services dominate the market at a whopping 99% that consists of Android controlling 62.6%, iOS at 32.5% and Windows owning 4% (Reed, 2013).
Taking a look back to the 2nd quarter of 2012 it is clear that the tablet market is changing and other companies are doing it right. Apple experienced a -14.1% growth in just 1 year while Samsun grew 277%, Asus 120.3%, Lenovo 313.9% Acer at 247.9% and all the other competitors in the other combined 38.8% from the 2nd quarter 2013 results, 136.6%. This has resulting in a 59.6% growth of the entire tablet market
The industry structure of the computer manufacturing market consists of two predominant devices, the desktop computer and the tablet. These markets, while the products are similar, are dominated by different companies but both are consolidated because a “big 5” set of competitors contribute to a majority of the market share.
Tablet Market
The tablet market in very consolidated, containing only a small number of very powerful firms that are all gaining solid ground as viable competitors. A few years ago Apple virtually dominated the market when tablets were first introduced but as business goes, competitors will not follow very far behind. This showed as companies like Samsung and Windows started to flood the market with other companies as well. Although Apple still is the majority market share holder of tablets this will very soon not be the case.
The nature of the industry is very intense because technological advances happen practically every day. The speed of processors, visual quality, ease of access and security are aspects that these devices experience with every operating system update and product launch.
At the end of the 2nd quarter of 2013, the tablet market was controlled by 5 major companies; Apple at 32.5%, Samsung at 18%, ASUS at 4.5%, Lenovo at 3.3% and Acer at 3.1%, all of which control 61.2% of the entire industry. When considering the Operating Systems of tablet devices, 3 services dominate the market at a whopping 99% that consists of Android controlling 62.6%, iOS at 32.5% and Windows owning 4% (Reed, 2013).
Taking a look back to the 2nd quarter of 2012 it is clear that the tablet market is changing and other companies are doing it right. Apple experienced a -14.1% growth in just 1 year while Samsun grew 277%, Asus 120.3%, Lenovo 313.9% Acer at 247.9% and all the other competitors in the other combined 38.8% from the 2nd quarter 2013 results, 136.6%. This has resulting in a 59.6% growth of the entire tablet market