Projected declines in copper prices and high competition among suppliers will help keep growth in motherboard prices low
Los Angeles, CA (PRWEB) December 08, 2014
Computer motherboards have a buyer power score of 3.6 out of 5. This score reflects relatively positive market conditions for buyers, though there are some limitations on purchasing power. Prices for motherboards have increased moderately in recent years due to rising demand trends. The manufacturing of motherboards frequently takes place overseas in countries with lower labor costs. Despite falling domestic wages, these countries have experienced rising wages in recent years, pressuring prices upward for domestic suppliers that import. Fortunately for buyers, the prices of semiconductors, electronic components and copper are decreasing, helping to partially offset price increases from climbing demand. “Over the next three years, motherboard prices are forecast to rise at a slower pace due to projected declines in copper prices,” according to IBISWorld business research analyst Kevin Young.
The upstream supply chain for motherboards experiences some volatility that creates greater risk for buyers. Volatile copper and precious metal prices can cause purchasing costs to fluctuate unpredictably for manufacturers; however, final product prices are not as volatile as input costs. High levels of competition help to moderate price increases. The top manufacturers of motherboards are billion-dollar companies that produce well-known brand names for electronics. These companies compete aggressively on price to maintain their market shares and win customers. “The high level of competition in this market ultimately boosts buyer power,” says Young.
Although a large number of motherboards are produced with different features and specifications, there is a low level of product specialization. Motherboards are mass-produced and typically not customized for individual buyers. As a result, buyers have a large variety of options to choose from and are not locked into specific brands or suppliers. Furthermore, buyers have low switching costs and can easily choose new suppliers if desired. A lack of substitutes somewhat diminishes buyer power, though; motherboards are essential components of computers, so buyers lose some leverage in negotiating with suppliers because alternative products cannot be used. Major vendors include ASUSTek Computer Inc., Acer Inc. and Intel Corporation. For more information, visit IBISWorld’s Computer Motherboards procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of motherboards, which connect the crucial components of a computer, including its hard drive, memory and central processing unit (CPU). This report includes desktop computer and server motherboards but does not cover motherboards that are already mounted in new computers.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.