Personal Computing Procurement Intelligence

In this Personal Computing procurement intelligence report, we have estimated the pricing of the key cost components such as raw materials and electronic components, labor, equipment, packaging and labeling, logistics and supply chain. Other costs include R&D, rent and utilities, licensing and compliance, sales and marketing, general and administrative, and taxes.

Suppliers of personal computing products often use one of many pricing structures. One of the prominent pricing structures used is cost-plus pricing. Key benefits of this pricing model include simplicity of calculation, consistent rate of return, and dependability. Other key pricing models used in this industry are bundled pricing, competition-based pricing, demand-based pricing, and penetration pricing. According to data published by Federal Reserve Economic Data (FRED), the Producer Price Index (PPI) of semiconductors and other electronic component manufacturing increased from 56.73 in June 2023, to 57.84 in January 2024, indicating that the selling prices of these items as perceived by the producers have risen during this period. The costs associated with logistics and supply chain were considerably high at the end of 2023 and early 2024, due to geopolitical conflicts, Houthi vessel attacks, port congestions, and shipping delays. Freight rates between North America and Asia increased by 173% at the end of January 2024 as per the latest Freightos estimates. Rates double between the Mediterranean and Asia routes as many carrier companies increased their rates from USD 500 to 2,700 per container.

Key factors affecting personal computing product prices include fluctuations in the prices of raw materials and electronic components, supply chain and logistical challenges, labor cost variations, and licensing and compliance needs. Common raw materials include plastic, glass, metals, aluminum, arsenic, and silicon, and their prices vary based on various parameters. For instance, the prices of plastic are dependent on commodities such as crude oil and natural gas. Similarly, costs of electronic components such as semiconductors and batteries may fluctuate based on several parameters. For instance, in 2023, several key suppliers were faced with a global chip shortage due to the U.S.-China tech war and geopolitical conflicts. This led to a rise in semiconductor prices and led to delays in product manufacturing. Since 2022, the chemicals used in chip manufacturing have increased by 10 - 20%. Similarly, the labor costs for this chip manufacturing have increased especially in the U.S. and European regions in 2022 and 2023. As a result, final product prices such as computers or tablets have increased by almost 15 - 25% between 2022 and 2023. 

Order your copy of the Personal Computing category procurement intelligence report 2024-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities - Personal Computing

• Geographical Service Provision - 20%
• Industries Served - 15%
• Years in Service - 15%
• Employee Strength - 15%
• Revenue Generated - 15%
• Key Clientele - 10%
• Regulatory Certifications - 10% 

Functional Capabilities - Personal Computing

• Product Range - 25%
• Processor Type (I3/I5/I7) - 20%
• Storage Type (HDD/SSD) - 15%
• Use of Sustainable Materials (Yes/No) - 15%
• Delivery Mode (Online/Offline) - 10%
• Customer Service - 10%
• Others - 5%

Rate Benchmarking

The average prices of personal computing items in the U.S. vary according to the type of product. For instance, in 2023, the average prices of laptops in the U.S. were in the range of USD 200 - USD 2,400. The average prices of desktops were in the range of USD 180 - USD 2,100. The average prices of tablets fell within the spectrum of USD 100 - USD 900. Moreover, prices also vary according to geographical location. For instance, in 2023, office laptops of low- to mid-range specifications spanned in the range of USD 200 - USD 950 in the U.S., and fell within the range of USD 300 - USD 1,150 in the U.K. Moreover, such laptops fell within the spectrum of USD 200 - USD 750 in China.

According to data published by the ‘U.S. Bureau of Labor Statistics’, the average industrial electricity prices in the U.S. increased from USD 0.168 per kWh in February 2023, to USD 0.173 per kWh in January 2024. On another note, as per data published by ‘The World Bank’, prices of natural gas increased from USD 9.55 per MMBtu in July 2023 to USD 11.51 per MMBtu in December 2023. These factors led to an increase in the raw material costs for personal computers during these periods, which ended up raising the prices of the same.

Supplier Newsletter

In January 2024, Dell Inc. announced the launch of a new series of its ‘XPS’ laptop line. These laptops have minimalistic design features and superior display resolutions such as Full High Definition (FHD), Quad High Definition (QHD), and Ultra High Definition (UHD). Moreover, they also have seamless glass touchpads, larger keycaps, and OLED touch options. The launch of these products facilitated Dell to strengthen its product innovation and design capabilities and facilitate a superior display experience for customers.

In October 2023, Apple Inc. launched a new series of its ‘MacBook Pro’ lineup of laptops. These laptops have a novel Graphics Processing Unit (GPU) and Central Processing Unit (CPU) architecture, thus enabling superior display and speed functionalities. Moreover, these laptops also have enhanced battery life, improved camera, unified memory support, and advanced connectivity features. The introduction of these products enabled Apple to provide customers with top-of-the-line features and capabilities.

In September 2023, HP Development Company, L.P. launched a new product named as ‘Spectre Foldable PC.’ This 3-in-1 device is capable of switching between laptop, desktop, and tablet. It has enhanced portability and flexibility and is also equipped with attributes such as a wireless charging keyboard, OLED display, and built-in AI-based security features. The launch of this device enabled HP to augment its range of innovative products and enable an improved hybrid experience for customers. 

List of Key Suppliers

• Acer Inc.
• Apple Inc.
• ASUSTeK Computer Inc.
• Dell Inc.
• HP Development Company, L.P.
• Huawei Technologies Co., Ltd.
• Lenovo Group Ltd.
• LG Electronics Inc.
• Samsung Electronics Co., Ltd.
• Sony Group Corporation 

Browse through Grand View Research’s collection of procurement intelligence studies:

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Personal Computing Procurement Intelligence Report Scope 

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions. 

Our services include (not limited to): 

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions