Competitors Analysis for Pc Indsutry

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Competitors analysis Today industry of Personal Computers has become highly competitive. Rise of companies that entered market with low prices, standardization of PC components, alternative technologies all that lead to this situation. In 80s IBM hold almost 70% of PC market share. Later, as customers started to view PCs as commodities, their share started to decreased. “Wintel” has replaced “IDBM-compatible” as the industry standard in the early 90s. In 2008, there were more than 1 billion PCs in the world. Only in 2007, 269 million units were sold. However, revenue growth rate did not increase with volume growth. Average selling price was dropping at rate of 8% per year. Also, key components prices dropped by an average annual rate of 30%. As result, average profit margin on PC was less than 5% in 2007. Most of companies started to change their strategy and focus on different profit pools with higher margin. For example, after share loss in PC IBM decided to exit PC business and enter high-margin software and services pool. HP implemented same approach by expensive acquisitions in 2007. Later they divided company in two independent divisions, HP Inc. and Hewlett Packard Enterprise. Dell founder Michael Dell returned as CEO in 2007 and announced far-reaching transformation plan. They doubled investments in design and began releasing customer-friendly products. Also they adopted new distribution channels. As we can, most of industry leaders try to focus on one more than profit pool, as margin drops in their main pool of personal computers. Apple was able to maintain good profit margins as it built and provided integrated ecosystem of device, software and content. Along with computer manufacturing they developed software components of their products. They added profit share to its products from different pool. Furthermore, Apple positioned its products at
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