Tuesday, May 19, 2020

Computer Industry - 1268 Words

Computer Industry Analysis Laptop prices hit new low Summary: The article Laptop prices hit new lows by Gary McWilliams focuses on the computer industry, and how prices have evolved during past 5 years, specifically 2001-2005. The article reports that the prices of laptop computers have decrease substantially over the past 5 years. The average price for a laptop hit a new low in 2005 of about $1000; a decrease of about $250 from last year, and more than $600 from year 2001. In the past the demand for laptop computers comprised only of businesspeople. Now, college students demand represents a considerable percentage of the total demand for laptop computers. While in the past a laptop computer was considered a luxury, students†¦show more content†¦With a larger scale of production companies are applying better organizational skills to its resources, such as straightforward chain of command, and by this the range where the marginal product is positive would be greatly increased. Similar to improved organization and technique, the learning processes related to production, selling and distribution result in increased efficiency. In industries that are capital and research intensive such as the computer industry, efficiency requires large if not very large-scale operation. For such industries, the main source of scale economies is new product development costs or new, cheaper ways of production costs; spreading those huge costs over an increased number of units result in increased efficiency and in the end lower costs for end users/consumers. AMD and Intel both face tremendous economies of scale. The cost of building the first chip of a new design may in the billions of dollars, if one includes the cost of building the manufacturing facility, and the research and development costs. However, the more chips that are produced of a given design, the lower the average cost. Another reason for the significantly drop in price can be the adoption of the demand-driven or built-to-order production system. The directShow MoreRelatedApple And The Computer Industry1644 Words   |  7 PagesIntroduction The company started off as â€Å"Apple Computer,† best known for its Macintosh personal computers (PCs) in the 1980’s and 1990’s. Despite a strong brand, rapid growth, and high profits in the late 1980s, Apple almost went bankrupt in 1996 (Kim Yoffie, 2010, p.1). This can be explained that Apple has become larger and more significant than other competitors put together in 1980. Because Apple failed to innovate in 1996, the company almost went bankruptcy but eventually Steve Jobs took AppleRead MoreGrowth of the Computer Industry Essay1377 Words   |  6 PagesThe computer industry has experienced an impressive growth within the past 15 years. In our case, laptops fall under the category of computers as well. 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