Rapid technological change has resulted in falling retail prices for industry products, making them more attractive and affordable for consumers.
(PRWEB) March 05, 2015
Over the past five years, Online Computer and Tablet Sales have experienced strong growth in line with the overall e-commerce sector. IBISWorld expects industry revenue to increase at an average annual rate of 9.1% over the five years to 2015 to reach a projected $28.0 billion. According to IBISWorld Industry Analyst Will McKitterick, “The introduction of Apple's iPad in 2010 marked the beginning of new-generation computers and tablets and spurred industry demand. Rapid technological change has resulted in falling retail prices for industry products, making them more attractive and affordable for consumers.” Not only have online retailers come out of the recession stronger than brick-and-mortar computer stores, they are also experiencing rapid revenue growth as the economy recovers and consumer spending revives.
Online retailers operate in a highly competitive environment, with the top four companies accounting for the majority of the total market. “To stay competitive and generate sales, companies have been forced to aggressively compete on price, promotions and other discount initiatives,” says McKitterick. “In addition, many players have invested heavily in advertising and rebates, and offered free shipping to distinguish themselves from competitors.” Consequently, the industry is expected to generate relatively low profit in 2015, even though operators benefit from low overhead costs associated with online product distribution and sales.
In the five years to 2020, the industry will continue to grow, albeit at a slower pace. Improving per capita disposable income and rising consumer confidence in the security of online purchases will likely drive repeat sales. In addition to improving economic conditions, product innovations and new technologies will further bolster industry growth. During the next five years, demand for tablets is projected to surpass demand for computers, thus becoming the prominent product for industry operators. Nevertheless, the looming threat of online sales taxes may hamper sales and slow profit growth. By burdening online retailers with sales tax on all purchases, this legislation could remove a significant portion of the cost saved by operating online, resulting in fewer transactions. In addition, many small and midsize operators may need to hire tax specialists for compliance, reducing margins.
For more information, visit IBISWorld’s Online Computer and Tablet Sales in the US industry report page.
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IBISWorld industry Report Key Topics
This industry retails desktop, notebook and tablet computers via the internet. While most players purchase goods from domestic and international manufacturers and wholesalers, and then sell them to end consumers, there are also manufacturers that bypass the middleman and directly sell their goods to end consumers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized 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 US 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 Los Angeles, IBISWorld 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.