Computer and Software Retailing in Australia Industry Market Research Report now updated by IBISWorld

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Computer and software retailers experienced continuous change over the past five years. While growth in the early part of this five-year period was largely from the replacement market, growth in the later years was attributed to the increasing popularity of tablet computers following the launch of the iPad by Apple in May 2010. Industry sales during this period were also aided by strong demand for storage and network devices following increased consumer access to digital media. For these reasons, industry research firm IBISWorld has updated its report on the Computer and Software Retailing industry.

IBISWorld Market Research

IBISWorld Market Research

Tablet computers are changing the face of computer and software retailing

Computer and software retailers experienced continuous change over the past five years. While computers become smaller, faster and more powerful than ever before, the introduction of new technology in the form of tablet computers created a new wave of demand for retailers. Continued demand from a growing list of consumer groups gave the Computer and Software Retailing industry in Australia annualised sales growth of 4.0% over the five years through 2011-12. According to IBISWorld industry analyst Claudia Burgio-Ficca, ‘while growth in the early part of this five-year period was largely from the replacement market, growth in the later years was attributed to the increasing popularity of tablet computers following the launch of the iPad by Apple in May 2010.’ Industry sales during this period were also aided by strong demand for storage and network devices following increased consumer access to digital media. Trends in real household disposable income, consumer sentiment, growth in internet connections, a rise in PC density and growth in the IT and telecommunications literacy of Australian consumers also influenced industry sales over this period. Industry sales will rise 4.7% in 2011-12 to reach $6.86 billion.

Computer and software retail sales are forecast to rise over the next five years. ‘Demand will largely be driven by unprecedented growth in tablet computers, which are viewed as a turning point for the largely saturated computing market,’ adds Burgio-Ficca. As a result of the shift in consumer demand, laptop sales are expected to suffer. Smartphones are expected to become the latest threat to desktop computers, with a growing number of consumers set to undertake more internet searches via smartphones rather than desktop systems. Demand for mobile internet will be driven by the retail segment as more consumers use their smartphones for internet browsing while out shopping.

Market share concentration levels in the industry have been subject to increasing competition over the past five years. Continued demand for the latest technology placed pressure on operators to supply a range of goods at discount prices. In addition, a growing number of smaller operators were affected by the dominance of larger players like Harvey Norman, which were able to offer bundle packages and excess stock sales. In 2011-12, the Computer and Software Retailing industry is deemed to have a medium level of market share concentration. The concentration held by players in the industry grew significantly over the past five years, albeit from a low base. The largest players in the industry are Harvey Norman, JB Hi-Fi and Woolworths.

For more information, visit IBISWorld’s Computer and Software Retailing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Operators in this industry retail a broad range of computer and software products including PCs, desktops, notebooks, laptops, tablets, scanners, printers, keyboards and packaged software. These products are purchased from domestic manufacturers and wholesalers. Operators then retail these goods, through their stores to the general public for private use.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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