Declining input costs and growing competition among vendors will drive prices down
Los Angeles, CA (PRWEB) February 08, 2015
Computer displays have a buyer power score of 4.5 out of 5. This score represents a beneficial pricing environment for buyers, with prices that have declined steadily during the past decade. “Due to growing import penetration, vendors have attempted to lower prices to maintain market share,” says IBISWorld research analyst Andrew Krabeepetcharat. “This price-based competition has resulted in greater purchasing power for buyers.” Rising import penetration in the manufacturing sector has also prompted domestic suppliers to lower prices to compete with computer displays manufactured in lower-wage countries. However, a moderate level of market share concentration somewhat limits buyer power because buyers have fewer alternative suppliers to choose from. Current major vendors include Acer Inc., Dell Inc., Hewlett-Packard, LG Electronics and Samsung.
Declining prices have also been the result of falling input prices of semiconductors and electronic components, which has allowed manufacturers and retailers to lower market prices to undercut competitors. On the demand side, rising corporate profit and growing private investment in computers and software have boosted demand for computer displays, allowing suppliers to maintain lower prices due to higher sales volumes. Adds Krabeepetcharat, “Demand has also increased as the percentage of households that own computers has grown, in turn prompting new vendors to enter the market as well as encouraging more price-based competition.”
Due to a steady trend in declining prices, it is not necessary for buyers to enter purchase agreements immediately. Buyers also benefit from a low level of supply chain risk, which ensures little chance of disruptions in obtaining computer displays. In addition, purchasing large quantities directly from a manufacturer hedges against any risk of supplier bankruptcy because the majority of these suppliers are large multinational companies that produce a wide variety of electronics. To avoid holding onto outdated equipment, buyers should purchase computer displays as needed. Furthermore, switching costs are low, which gives buyers more negotiating power because suppliers that strive for brand loyalty offer reliable products at competitive prices. For more information, visit IBISWorld’s Computer Displays procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of computer displays, which are electronic visual displays for computers. Computer monitors include a display device, circuitry and an enclosure. The two main types of screens available are liquid-crystal display (LCD) and cathode ray tube (CRT) displays. Suppliers include manufacturers, wholesalers and retailers. This report does not include all-in-one 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.