MARKET CONCENTRATION IN THE PERSONAL COMPUTER INDUSTRY

Abstract

The objective of this exploratory study was to investigate the current market concentration in the personal computer (PC) industry and compare it with trends in other manufacturing industries. The PC industry is specific in that it operates on a global market. The results of the study show that the PC industry is becoming increasingly concentrated. The market power of companies in the PC industry is growing due to merger and acquisition processes and the inability of some companies to maintain large economies of scale. The values of CR4 and HHI indicators for the period 2018–2020 indicate the oligopolistic structure of the PC market. However, due to technological innovations in the PC industry and other competitive industries such as smartphones and tablets, PC vendors have less market power than manufacturers in other, more stable oligopolistic industries. Moreover, a comparison of concentration trends between the global PC industry and U.S. manufacturing industries points to differences in market concentration. Although the number of businesses in both industries is declining, market concentration trends differ, as the PC industry shows a constant upward trajectory of concentration. Globalization processes that increase concentration and market power in industries characterized by large economies of scale are also discussed, along with the results of examining the relationships between market concentration rates and companies’ financial performance.

Data:
Received: 27 Mar 2021
Revised: 9 May 2021
Accepted: 6 Jun 2021
Published: 20 Jun 2021