II. Industry LevelCompanies in the Personal Computer Manufacturing industry produce desktop personal computers and portable Pc's such as laptops, notebooks and tablets. Major US companies include Apple, Dell and Hewlett-Packard, while major companies based outside the United Stated include Acer group, Lenovo and Toshiba. Though PC companies in the US are commonly referred to as manufacturers, most PC manufacturing is conducted offshore.The figure above shows the total revenue and sales of the PC industry. It can be seen that the forecasted revenue for 2015 would be lower than the revenue during 2014. This decline can be caused by the growing competition from tablet devices, phones and phablets. Because of this demand for PC will start to decline so htere would be a high probability that shipments would also decline in the next 3 years.

Demand in the PC market is driven by technological advances, disposable income in the consumer market and corporate spending cycles. The profitability of individual companies depends on supply chain efficiency and ancillary products and services. Large companies have advantages in leveraging extensive marketing budgets and sales channels, securing component discounts and manufacturing efficiencies. On the other hand small companies can compete by offering unique products or localized service and support. As of now the PC industry is highly concentrated, the top 50 companies account for nearly all revenues. Lenovo is still the worldwide leader in PC shipments as of 2014, with 19.4 percent market share. However the shares between HP and Lenovo narrowed, with HP growing 16 percent and garnering 18.8 percent of the market.The figure above shows that the PC industry is highly concentrated. The top five companies holds more than half of the market shares.