Personal Computing – Procurement Best Practices & Sourcing Strategies

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Personal Computer Market Global Size:

ELINT Market Research has explored the global key facts and insights and launched a personal computer procurement market research report; according to which, the global PC shipment was calculated at 55.2 million units in the first quarter of 2023. Likewise, worldwide smartphone shipment was estimated at 280.20 million units, and tablet shipment carried 30.7 million units value in the same forecasted period.

Market Definition:

The global personal computer market possesses key activities like manufacturing, supply, and trading of PCs. Furthermore, this industry fulfills the worldwide professional computing requirements of big sectors like automotive, manufacturing, technical, etc. Also, individuals can purchase these computers for their personal utilization, which are available in distinct shapes and sizes like conventional desktops, compact PCs, and portable laptops. Additionally, the shifting trends towards remote and hybrid work models and digitalization, propel the high growth in the personal computer market.

Personal Computer Market Drivers:

1. Increasing Needs for Durable Industrial PCs –

The foremost growth driver for the personal computer market is the increase in demand for durable industrial PCs in multiple sectors like automotive, manufacturing, information systems, and more. These personal computers have qualities like reliability and durability; hence, industries employ them to get stability in their operations.

2. Rising Trend of Remote Work –

Due to the COVID-19 pandemic situation, multiple businesses all around the world employed a remote work model, which significantly contributed to high development in the personal computer market. These devices are very helpful in facilitating efficient communication between individuals and organizations.

3. Constant Technological Advancements –

Personal computer requirements are evolving due to continuous technological innovations since these devices possess handy components like speedier processors, higher-quality displays, vast storage ability, and compact designs.

Personal Computer Market Challenges:

1. Lower PC Demands Due to Recession –

The personal computer market is experiencing lower demand due to some key factors like global recession, higher production costs, and elevated interest rates. Thus, consumers and corporate sectors are hesitating to spend on personal computers.

2. Disturbance in Semiconductor Supply –

Semiconductor works as the key component in the manufacturing of personal computers. Further, this semiconductor sector experienced disruptions in supply due to multiple aspects such as the COVID-19 crisis and geopolitical matters. Hence, this disruption causing challenges for the PC industry too.

3. Rapid Changes in Consumer Choices –

Traditional desktops and PCs underwent low demand due to the rise of different mobile devices, tablets, and hybrid appliances. Various consumers are utilizing these modern devices, which drives challenges for PC manufacturers since they need to constantly adapt their products to fulfill consumer anticipations.

Personal Computer Market Opportunities:

1. Higher Adoption of As-A-Service Models –

PC manufacturers are offering as-a-service solutions, similar to cloud-based approaches. In this method, PC suppliers provide hardware, software, and support assistance on a subscription basis; so consumers can utilize scalable computing solutions for a limited period of time.

2. Expansion in Gaming and Content Making Activities –

Gamers and content creators are massively dependent on personal computers to fulfill their requirements since PCs offer features like high performance, quality graphics, power-saving modes, and abundant storage.

3. PCs Integration in the Education Technology Sector –

As education integrates technologies, the demand for personal computers also rises, since they assist in online education, cooperative projects, etc., Thus, PC manufacturers are developing more affordable and durable devices to meet educational needs.

Personal Computer Market Segmentation:

1. Different PC Usages –

The foremost segmenting factor for the global personal computer market is the different types of usages of PCs including day-to-day tasks, gaming, professional workstations, designing, and more.

2. Various Shapes and Sizes of PCs –

Manufacturers provide personal computers in diverse shapes and sizes including traditional desktops, compact PCs, and movable laptops. Hence, this is another segmenting factor, which allows consumers to choose a PC as per their needs.

3. Distinct Price Ranges –

Personal computers comprise different price ranges; so consumers can choose among lower-level, mid-range, and expensive PCs. Thus, users can get diversity in devices and buy depending on their financial considerations.

Supplier and Buyer Powers in the Personal Computer Market –

Numerous territories operating in the global personal computer market demonstrate mixed levels of supplier and buyer powers. The foremost region is North America, which holds medium supplier power; it means PC manufacturers and suppliers are sharing balanced trading relations with consumers in this nation. Also, this country’s buyer power is medium, which means the average amount of purchasers are spending in buying PCs in this territory.

Moreover, in this list, another two key nations are the European Union and Asia, and both of these regions exhibit medium levels of supplier and buyer powers. Hence, similar to North America, these two countries also function on balanced terms in the PC manufacturing, supplying, and buying moves.

Impactful Cost Components in the Personal Computer Market –

In the global personal computer market, the impactful cost component includes prices of hard drives, microprocessors, displays, etc., which collectively contribute to the overall manufacturing costs of PCs. In this context, major countries including North America, the European Union, and Asia hold a modest 1–2% share of the total PC production cost structure.

Pricing Models in the Personal Computer Market –

The global personal computer market contains two pricing models. The first one is the contract pricing method in which manufacturers decide a fixed cost for PC; thus it provides predictability and solidity to both buyers and sellers during transactions. Contrarily, the price indexing model allows both parties to make adjustments to the pricing structure depending on market fluctuations.

Contract Structure in the Personal Computer Market –

The global personal computer market consists of prominent contract structures, which work particularly for business-to-business dealings. This contract usually lasts for shorter durations, i.e., less than two years. The reason behind the adoption of short-term agreements between buyers and sellers is that, in 2023, the PC market witnessed a decline in prices since mid-2022. Thus, personal computers’ inventory exceeds the standard inventory volumes, which propels businesses to avoid longer-term commitments, since they might become less profitable.

Leading Suppliers in the Personal Computer Market:

Various popular and leading suppliers are meeting the diverse needs of consumers in the worldwide personal computer market which include Lenovo​, HP Enterprise​, Dell Technologies​, Apple Inc.​, and Samsung​.