Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
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https://casecent.re/p/65963
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Abstract
Notebook computers were introduced in the market in the early 1980s and formed as 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. The case focuses on the changing trends in the notebook industry highlighting the problem of low margins with high sales, with emphasis on price reductions.
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Abstract
Notebook computers were introduced in the market in the early 1980s and formed as 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. The case focuses on the changing trends in the notebook industry highlighting the problem of low margins with high sales, with emphasis on price reductions.