High Sales with Low Margins: Notebook PC Makers' New Success Formula?



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Code :BSM0027

Year :
2005

Industry : Engineering, Electrical and Electronics

Region : Global

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: Notebook computers were introduced in the early 1980s and formed a smaller segment of the personal computer market. However, notebook computers have started registering high sales since the early 1990s. By 2005, notebook sales even surpassed desktop sales in the US market. Rapid technological developments and reductions in the prices of notebooks were primarily responsible for the surge in sales. Though sales increased for the notebook industry, the margins kept declining due to the drop in prices of notebook computers owing to intense competition among the industry players.

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Pedagogical Objectives:

  • To highlight the changing trends in the notebook industry
  • To discuss the problem of low margins with high sales

    Keywords : Personal computer (PC) industry; Notebook industry; Margins; Economies of scale; Innovation Management Case Study; Low costs; High sales; Competition; Technology; Average retail price; PC manufacturers

    Contents :
    PC Industry Overview
    Upgradations in Technology
    Taiwanese Manufacturers


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