Falling input costs and expanding competition will continue, leading to further price declines
Los Angeles, CA (PRWEB) February 05, 2015
The laptop computer market exhibits a buyer power score of 4.6 out of 5, which indicates that buyers have a high level of power in negotiations. Buyers benefit from strong competition based on the widespread availability of substitute goods. Prior to 2007, laptops were the only option for mobile computing, but the smartphone and tablet computer have exploded in popularity following the introduction of Apple’s iPhone and iPad in 2007 and 2010, respectively. “With two strong product competitors in the mobile computing market, buyers have substantially more leverage during negotiations,” says IBISWorld analyst Kevin Young, “and laptop vendors have lowered prices in an effort to maintain market share.”
Additionally, buyers benefit from falling input costs for laptops. Prices for computing hardware and software licensing, the major inputs in laptop production, have been in a long-term state of decline. Coupled with high market share concentration and vigorous price-based competition, suppliers have passed these cost reductions onto buyers in the form of lower prices. Adds Young, “Falling prices also allow buyers to put off a buying decision if desired.” Low supply chain risk has contributed to low price volatility in the three years to 2014, allowing buyers to budget for laptop computer procurement with little risk of sudden price spikes.
Not all factors favor buyer power, though. Global retail and technology manufacturing giants hold significant sway in the market; the remaining vendors are small retailers that often struggle to maintain profit margins. Thus, buyers working with top vendors will experience decreased leverage, while buyers working with smaller retailers risk working with a vendor that has a greater likelihood of going bankrupt during the laptop's useful life. Market vendors include Acer Inc., Apple Inc., Dell, Hewlett-Packard, Samsung and Sony. For more information, visit IBISWorld’s Laptop Computers procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of laptop computers, also known as notebook computers or simply laptops. Laptops are portable personal computers that include a display, keyboard, touchpad and speakers in a single unit. This report excludes tablets, smartphones and other mobile devices.
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.