Essay: The Global Computer and Peripheral Industry

Sample Essay

The global poor economic conditions and declining demand for PCs have affected Dell Incorporation’s business. The crisis that stemmed out of the mortgage industry of the US has taken its toll on other industries including information technology. The declining sales and profits led to the company restructure its business model from regional approach to its business to globalized strategy (InformationWeek, 2008).

The company’s major market of the US is still going through recouping phase and the economic conditions are still poor because of high inflation of 3.4% in March 2010 (NewsonNews, 2010) that is affecting consumer spending on electronic items. Although the Fed has pledged to keep the interest rates low for an extended period, businesses are still finding it difficult to gain financing from lenders or raise capital from the capital markets as the sentiments are still low. Altogether this situation does not forecast a positive sign for the IT industry.

The global computer and peripherals industry comprises of major manufacturing companies including HP, Acer, Toshiba, Dell, and Apple. In addition to these companies, there is a parallel market for regional brands and even unbranded computers products. HP holds the majority of market share of 14% while Dell holds 10.2% of the global market (DataMonitor, 2010). The global electronic computers trade sector has slowed down due to the recent financial crisis however recovery is predictable in 2010, after which the development pace is set to speed up progress towards 2014. In 2009, the sector had generated revenues of $553.1 billion dollars, showing a CAGR of 4% for the period ending 2005-2009 (DataMonitor, 2009).

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