Industry Analysis & Industry Trends
The Computer and Peripheral Equipment Manufacturing industry is very competitive, as falling selling prices and low profit margins show. Demand for computers and peripheral equipment has been promoted by cheap prices and by the release of new and enhanced products, computer software and applications. However, computer and peripheral equipment manufacturing has tended to shift to countries that have access to low-cost labour and efficient supply chains, which means that the number of firms and establishments in the United Kingdom has been falling.
The industry is expected to generate revenue of £1.1 billion in 2014-15, down 4.5% on the previous year. The domestic market for computers and peripheral equipment is estimated to be £8.4 billion in 2014-15... purchase to read more
Industry Report - Industry Analysis Chapter
Industry revenue is expected to decline at a compound annual rate of 5% over the five years through 2014-15, falling to £1.1 billion in 2014-15. The industry has displayed some volatility, but revenue has fallen in all years of the period and is expected to drop by a further 4.5% over the current year. Contracting revenue and pricing pressures have held down profit margins, but this has been partly offset by cost-efficiency initiatives and exits from product and market segments that offer relatively low margins.
Over most of the five-year period, the unit selling prices for comparable products are expected to decline, mainly because of reductions in the cost of inputs, which tend to be passed on to customers due to the very competitive trading environment... purchase to read more