Short circuit: Intense competition has eroded industry profitability

The Computer and Computer Peripheral Wholesaling industry has struggled to benefit from increasing adoption of technology across households, businesses and government organisations over the past five years. Industry revenue has been declining for over a decade as wholesalers continue to face pressure from intense competition, substitute products and wholesale bypass. While the average manufacturing price of computers has risen over the past five years, wholesalers have not been able to pass on these cost increases due to strong price competition, leading to a decline in industry profitability.The development and widespread consumer acceptance of industry products such as tablets has dampened revenue declines over the past five years...read more.

Industry Statistics & Market Size
Revenue
$18bn
Annual Growth 13-18
-2.5%
Forecast Growth 18-23
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Profit
x.x%lock
Employment
22,804
Businesses
1,740
Market Share of Companies

Industry Threats & Opportunities

  • Intense competition, substitute products and wholesale bypass have contributed to revenue declines
  • Declining revenue and intense competition have forced a number of firms to exit the industry
  • Price pressures in an increasingly concentrated market will continue to push industry prices down

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    Industry Report - Industry Investment Chapter

    The industry exhibits low capital intensity. For every dollar spent on wages, an estimated $0.05 will be spent on capital costs in 2017-18. Labour functions are required for sourcing, warehousing, logistics, distribution and marketing. Capital investment is needed for equipment for handling, holding and moving stock (such as warehouses and delivery vehicles), and computers and inventory management systems. Over the past five years, increasing instances of technological advancements that have improved the supply chain and inventory monitoring have led to a greater reliance on capital. Consequently, capital intensity has increased over the past five years...purchase to read more.

    Additional Insights for the Computer and Computer Peripheral Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Computer and Computer Peripheral Wholesaling Industry are

  • Having an extensive distribution/collection network
  • Effective product promotion
  • Ability to control stock on hand

    • IBISWorld analysts also discuss how external factors such as Capital expenditure by the public sector and Demand from computer and software retailing in the Computer and Computer Peripheral Wholesaling industry impact industry performance..

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    What's in this report

    Industry Products

    What is the Computer and Computer Peripheral Wholesaling Industry?

    Industry firms wholesale computers, tablets, computer peripheral equipment, computer servers, mainframe computers, computer software and computer games.

    Industry Products
  • Tablet computers
  • Laptops and notebooks
  • Desktop computers
  • Servers and mainframes
  • Software and computer games
  • Computer peripheral equipment
  • Computer components
  • Other products
    • Industry Activities
  • Computer peripheral equipment wholesaling
  • Computer and tablet wholesaling
  • Computer game wholesaling
  • Server wholesaling
  • Software wholesaling
  • Storage equipment wholesaling
  • Printer wholesaling
  • Monitor wholesaling
  • Scanner wholesaling
  • Keyboard and mouse wholesaling
    • Table of Contents

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Capital expenditure by the public sector
  • Demand from computer and software retailing
  • Private capital expenditure on machinery and equipment
  • Demand from online shopping
  • IT and telecommunications adoption
  • Real household discretionary income

    • Current Performance
  • Revenue and profitability
  • Industry structure
  • Online challenges
  • Developing technology
  • Chart: Revenue Growth

    • Industry Outlook
  • Revenue and profitability
  • Future computing influences
  • Industry challenges
  • Table: Computer and Computer Peripheral Wholesaling Industry Revenue Outlook

    • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Computer and Computer Peripheral Wholesaling Industry Lifecycle vs The Economy

    • Products & Markets

    Supply Chains
    Key Buying Industries
  • Financial and Insurance Services
  • Central Government Administration
  • State Government Administration
  • Education and Training
  • Professional Services
  • Computer and Software Retailing
  • Data Processing and Web Hosting Services

    • Key Selling Industries
  • Computer and Electronic Office Equipment Manufacturing

    • Products & Services
  • Tablet computers
  • Computer peripheral equipment
  • Desktop computers
  • Laptops and notebooks
  • Computer components
  • Software and computer games
  • Servers and mainframes
  • Other products
  • Chart: Computer and Computer Peripheral Wholesaling Industry Products and Services Segmentation

    • Demand Determinants
    Major Markets
  • Organisations
  • Retailers
  • Public sector institutions
  • Other markets
  • Chart: Major Market Segmentation for the Computer and Computer Peripheral Wholesaling Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Computer and Computer Peripheral Wholesaling

    • Basis of Competition
  • Internal competition
  • External competition

    • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Computer and Computer Peripheral Wholesaling Industry

    • Industry Globalization

    Major Companies

    Synnex Australia Pty Ltd, Ingram Micro Holdings (Australia) Pty Limited, Apple Pty Limited,
  • Table: Synnex Australia Pty Ltd - financial performance
  • Table: Ingram Micro Holdings (Australia) Pty Limited - financial performance
  • Table: Apple Pty Limited - financial performance

    • Operating Conditions

    Capital Intensity
  • Chart: Level of Capital Intensity for the Computer and Computer Peripheral Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

    • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

    • Regulation & Policy
    Industry Assistance

    Key Statistics

    Table: Industry Data for the Computer and Computer Peripheral Wholesaling Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data

    Jargon & Glossary

    Computer Servers
  • Any combination of hardware or software designed to provide services to clients. When used alone, the term typically refers to a computer that may be running a server operating system.
    • Computer Storage
  • Computer devices and recording media, often called storage or memory, that retain digital data used for computing for some interval of time.
    • Mainframe Computers
  • Relatively large computers built to handle very large databases, thousands of user terminals with fast response times, and millions of transactions.
    • Software As A Service (Saas)
  • A software licensing model that allows consumers to purchase software on a subscription basis via a web browser.
    • What Our Customers Say
    Why buy this report?

    IBISWorld’s Computer and Computer Peripheral Wholesaling market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Computer and Computer Peripheral Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Computer and Computer Peripheral Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Computer and Computer Peripheral Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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