Computer industry
consists of companies engaged in manufacturing and assembling of a broad range
of products, namely: Personal Computers, Laptop Computers, Servers, Storage
devices, Networking devices, Printers, Scanners, ATM machines and mobile
devices. Computer hardware manufacturing industry is a $346 billion business
globally. Computer Industry started in 1975 with sales of $60million. Today the
industry has grown significantly and in 2017 it celebrated its forty-second
anniversary. Globally the PC sales are on a downward trend as smartphone sales
continues to grow, replacing the PC demand. Gartner forecast1
for 2018 reveals that the global devices market is stagnating. Mobile phone
shipments are only growing in emerging markets like Asia Pacific, and the PC
market is just reaching the bottom of its decline. Worldwide combined shipments
of PCs, tablets, ultramobiles and mobile phones are projected to remain flat in
2017. In 2017 the projected total is 2.3 billion, same as in 2016 estimates. In
figure 1.1 we can see Garner’s
projection of device shipment globally and also projection by device type for
the period 2016 to 2019.

However Computer
industry continues to remain the most innovate, profitable and valuable
industry in today’s industrial landscape. The global top 10 computer hardware
companies by market capitalization2
are: Apple Inc., Samsung Electronics Ltd., IBM, Foxconn, HP Inc., Lenovo,
Fijutsu, Quanta Computer, Assure and Compal.

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High-Level Risks  

The most innovative
industry is today’s global environment is also facing increasingly complex
challenges/ risk which could potentially affect corporate profitability and,
for some, survival. The high-level notable risks the computer industry is
facing include:

v  Economic
slowdown/slow recovery.

v  Ensuring
quality and reliability that builds customer loyalty and satisfaction.

v  Damage
to Brand.

v  New
Product Failure.

v  Increasing

v  Technology

v  Failure
to Innovate.

v  Evolving
regulatory and industry standards.

v  Distribution
or supply chain failure.

v  Loss
of Intellectual Property.

v  Cyber

v  Talent

Computer companies often face penalties and business losses if any of
their supply chain trading partner doesn’t comply with regulatory or customer
mandates. The cost in this cases usually turns out to be more than recalls, warranty
returns, rework, production disruptions,

Forecasts Flat Worldwide Device Shipments Until 2018 –

The World’s
Top 10 Hardware Companies-


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