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State of Personal Computers Market in the UK - Assignment Example

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This paper tends to explain economic factors behind the trend of dropping prices of personal computers despite the technological advancements and increase in demand for computers.
A certain market research outcome will help explain the actual fall in prices. UK market is used as a case study.
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State of Personal Computers Market in the UK
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State of Personal Computers Market in the UK

Download file to see previous pages... In other words, the portable PC must not necessarily have big memory or storage space since it can retrieve data from the centric server within the company (Gillam, 2010). Several companies adopted this technology, hence increased sale of the portable PC but reduced sales of desktops. A good VDI network may comprise of at least one desktop with over 70 portable PC depending on the size of the company. Other clouding technology also followed and led to a further increase in sales of portable PCs. The graph below shows a non-uniform decrease in PCs’ prices as time (in years) advances. Increase in PCs producing firms There have been increases in the number of mobile PC companies venturing into the market. These include Samsung which manufactured laptops, net books, notebooks, tablets and mini laptops among other portable PCs. Apple manufactures iMacs and iPhones among other portable PCs. These products had advanced and efficient applications and specifications that later attracted more customers. Majority shipped their desktops to developing nations while some were treated as electronic wastes. The younger generations were compelled to purchase the portable the portable gadgets since they have social media applications like twitter, Facebook and Skype among other applications. The products also came in smaller sizes but attractive shapes and colors to attract more customers (Bradley, 2005). The aspect of compatibility also enhanced increased demand for the products. One can easily connect his/her portable computer with the sound system or flat screen televisions for entertainment purpose. The companies have stiff competition with regular advancement of the portable computers which has kept the demand on a steady growing trend, since majority dump or ship their...
This paper offers a comprehensive theoretic economic analysis of high price elasticity of the demand for personal computers in the UK market. In the 2007, the market of personal computers in the UK recorded an estimated net worth of 12.27 billion USD. This increased to 12.81 billion USD in the year 2008 (4.4 % increase). The market PC market continued to depreciate to about 11.77 billion USD by the end of the year 2009. However, the same report indicates the market worth was on a growing trend from 2005 until 2008, from which the PC market worth started depreciating.There are several factors that boosted the increase in the PC market worth between 2005 and 2008. Several companies register an increase in sales of portable or mobile personal computers. The introduction of the portable PC in the markets attracted more customers
The law of demand and supply states the demand will increase as the price decreases and other factors held constant. However, this economic principle does not apply in the personal computer business. Since 2005, the price for the personal computers has been on a falling trend despite continuous growth in demand.
Different markets have different demand, price and supply relations depending on the prevailing economic status as well as the countries demographic characteristics among some factors. Different nations also have different policies or legislations to control its business. The aspect of a global description of the elastic curve with respect to the personal computers is a challenge. ...Download file to see next pagesRead More
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