Industry structure of computers - Essay Example

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.

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A few years ago Apple virtually dominated the market when tablets were first introduced but as equines 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. %, Samsung at 18%, SASS at 4. 5%, Leno at 3. 3% and Acre 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%, ISO at 32. % 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 Samsung grew 277%, Sass 120. 3%, Leno 313. 9% Acre at 247. 9% and all the other competitors in he 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 over the past year (Reed). These numbers show a lot of insight into the future of the tablet market.

To start, as successful as Apple was by paving the way for the tablet market, other competitors are going to affect the success of Apple but will ensure that the market as a whole will continue to thrive do to the growing popularity of the devices. Desktop Market The desktop market is consolidated as well; there is only a few relevant firms left that are household names in this market. Different from the tablet market are those who continue to control a large amount of market share. It might be thought that those who control tablet share must have evolved from their desktop counterparts but that Is not the case.

HP and Dell control this aspect of the computer market with Apple, Leno and Toshiba straggling around although they have gone on to focus on the newer, innovative products such as tablets and handheld devices. At the end of the owning 25. 1% of the market, Dell at 21 . 7%, Apple at 10%, and Toshiba and Leno owning 9% of the market share as well, together dominating 74. 8% of all desktop sales (Stevenson, 2013). Looking back to the 1st quarter of 2012, the desktop market started to see drops in performance for 4 of the big 5 competitors.

The growth of HP, Dell, Apple and Toshiba declined -22. 9%, -14. 4%, -7. 9% and -5. 2%, respectively, while Leno rose 13% (Stevenson). This shows that market is in its declining phase of the product life cycle because the leading companies experienced losses while still managing to hold strong grasp of the market as a whole. Summary The numbers support a few things; the tablet market is on the rise, the desktop market is on the decline and tablets have a huge potential to continue diminishing the desktop market.