Market Overview, Computer and Peripheral

www.datamonitor.com Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: [email protected]

Datamonitor Europe 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7675 7500 e: [email protected]

Datamonitor Middle East and North Africa Datamonitor PO Box 24893 Dubai, UAE t: +49 69 9754 4517 f: +49 69 9754 4900 e: datamonitormena@ datamonitor.com

Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8705 6901 e: [email protected]

Global - Computers & Peripherals 0199 - 2027 - 2010

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 1

INDUSTRY PROFILE

Global Computers &

Peripherals

Reference Code: 0199-2027

Publication Date: June 2011

EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market value

The global computers & peripherals industry grew by 10.5% in 2010 to reach a value of $590.7 billion.

Market value forecast

In 2015, the global computers & peripherals industry is forecast to have a value of $816.1 billion, an increase of 38.2% since 2010.

Market segmentation I

PCs is the largest segment of the global computers & peripherals industry, accounting for 44.8% of the industry's total value.

Market segmentation II

Europe accounts for 36.6% of the global computers & peripherals industry value.

Market share

Hewlett-Packard Company is the leading player in the global computers & peripherals industry, generating a 14.4% share of the industry's value.

Market rivalry

The computers and peripherals industry is dominated by a number of large players such as Hewlett-Packard and Dell. The concentration of the industry is a continuing trend, with merger and acquisition activity being common. This avoids threats from emerging companies, but rivalry is intense between the major players.

CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 6

Market definition 6 Research highlights 7 Market analysis 8

MARKET VALUE 9

MARKET SEGMENTATION I 10

MARKET SEGMENTATION II 11

MARKET SHARE 12

COMPETITIVE LANDSCAPE 13

LEADING COMPANIES 16

Dell Inc. 16 Hewlett-Packard Company 20 IBM Global Services 25 Toshiba Corporation 28

MARKET FORECASTS 33

Market value forecast 33 APPENDIX 34

Methodology 34 Industry associations 35 Related Datamonitor research 35 Disclaimer 36

ABOUT DATAMONITOR 37

Premium Reports 37 Summary Reports 37 Datamonitor consulting 37

CONTENTS



LIST OF TABLES Table 1: Global computers & peripherals industry value: $ billion, 2006–10 9

Table 2: Global computers & peripherals industry segmentation I:% share, by value, 2010 10

Table 3: Global computers & peripherals industry segmentation II: % share, by value, 2010 11

Table 4: Global computers & peripherals industry share: % share, by value, 2010 12

Table 5: Dell Inc.: key facts 16

Table 6: Dell Inc.: key financials ($) 18

Table 7: Dell Inc.: key financial ratios 18

Table 8: Hewlett-Packard Company: key facts 20

Table 9: Hewlett-Packard Company: key financials ($) 22

Table 10: Hewlett-Packard Company: key financial ratios 23

Table 11: IBM Global Services: key facts 25

Table 12: IBM Global Services: key financials ($) 26

Table 13: IBM Global Services: key financial ratios 26

Table 14: Toshiba Corporation: key facts 28

Table 15: Toshiba Corporation: key financials ($) 30

Table 16: Toshiba Corporation: key financials (¥) 31

Table 17: Toshiba Corporation: key financial ratios 31

Table 18: Global computers & peripherals industry value forecast: $ billion, 2010–15 33

CONTENTS



LIST OF FIGURES Figure 1: Global computers & peripherals industry value: $ billion, 2006–10 9

Figure 2: Global computers & peripherals industry segmentation I:% share, by value, 2010 10

Figure 3: Global computers & peripherals industry segmentation II: % share, by value, 2010 11

Figure 4: Global computers & peripherals industry share: % share, by value, 2010 12

Figure 5: Dell Inc.: revenues & profitability 19

Figure 6: Dell Inc.: assets & liabilities 19

Figure 7: Hewlett-Packard Company: revenues & profitability 23

Figure 8: Hewlett-Packard Company: assets & liabilities 24

Figure 9: IBM Global Services: revenues & profitability 27

Figure 10: IBM Global Services: assets & liabilities 27

Figure 11: Toshiba Corporation: revenues & profitability 32

Figure 12: Toshiba Corporation: assets & liabilities 32

Figure 13: Global computers & peripherals industry value forecast: $ billion, 2010–15 33

MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The global computers and peripherals industry comprises the global computer hardware market and the global computer storage & peripherals market. Values represent end-user spending. Any currency conversions used in the creation of this report have been calculated using constant annual 2010 average exchange rates. The computer hardware market consists of personal computers and servers and networking. The computer storage and peripherals market includes manufacturers of electronic computer components and peripherals, such as data storage components, motherboards, audio and video cards, monitors, keyboards, printers and other peripherals. The market value excludes semiconductors classified in the Semiconductors sub-industry.

For the purposes of this report, the global market consists of North America, South America, Western Europe, Eastern Europe, MEA, and Asia-Pacific.

North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Venezuela.

Western Europe comprises Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.

Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.

Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand.

Middle East-Africa (MEA) comprises Egypt, Israel, Nigeria, Saudi Arabia, South Africa, and United Arab Emirates.

MARKET OVERVIEW



Research highlights

The global computers & peripherals industry experienced growth up to 2009, when it contracted by 1.1%. 2010, however, saw a return to growth and it is forecast to grow at a similar pace for the foreseeable future.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 7.9% for the five-year period 2010 - 2015, which is expected to drive the market to a value of $245 billion by the end of 2015.

MARKET OVERVIEW



Market analysis

The global computers & peripherals industry experienced growth up to 2009, when it contracted by 1.1%. 2010, however, saw a return to growth and it is forecast to grow at a similar pace for the foreseeable future.

The global computer & peripherals industry had total revenues of $590.7 billion in 2010, representing a compound annual growth rate (CAGR) of 5% for the period spanning 2006-2010.

The Storage segment was the market's most lucrative in 2010, with total revenue of $102.4 billion, equivalent to 61% of the market's overall value. The Peripherals segment contributed revenue of $65.4 billion in 2010, equating to 39% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 7.9% for the five-year period 2010 - 2015, which is expected to drive the market to a value of $245 billion by the end of 2015.

MARKET VALUE



MARKET VALUE

The global computers & peripherals industry grew by 10.5% in 2010 to reach a value of $590.7 billion.

The compound annual growth rate of the industry in the period 2006–10 was 5%.

Table 1: Global computers & peripherals industry value: $ billion, 2006–10 Year $ billion € billion % Growth2006 486.3 366.2 2007 513.7 386.9 5.6%2008 540.1 406.8 5.1%2009 534.4 402.5 (1.1%)2010 590.7 444.8 10.5%

CAGR: 2006–10 5.0%

Source: Datamonitor D A T A M O N I T O R

Figure 1: Global computers & peripherals industry value: $ billion, 2006–10


MARKET SEGMENTATION I



MARKET SEGMENTATION I

PCs is the largest segment of the global computers & peripherals industry, accounting for 44.8% of the industry's total value.

The server and networking segment accounts for a further 26.8% of the industry.

Table 2: Global computers & peripherals industry segmentation I:% share, by value, 2010 Category % SharePCs 44.8%Server and Networking 26.8%Storage 17.3%Peripherals 11.1%

Total 100%


Figure 2: Global computers & peripherals industry segmentation I:% share, by value, 2010


MARKET SEGMENTATION II



MARKET SEGMENTATION II

Europe accounts for 36.6% of the global computers & peripherals industry value.

Americas accounts for a further 35.6% of the global industry.

Table 3: Global computers & peripherals industry segmentation II: % share, by value, 2010 Category % ShareEurope 36.6%Americas 35.6%Asia-Pacific 22.5%Rest of the World 5.3%

Total 100%


Figure 3: Global computers & peripherals industry segmentation II: % share, by value, 2010


MARKET SHARE



MARKET SHARE

Hewlett-Packard Company is the leading player in the global computers & peripherals industry, generating a 14.4% share of the industry's value.

Toshiba Corporation accounts for a further 7.1% of the industry.

Table 4: Global computers & peripherals industry share: % share, by value, 2010 Company % ShareHewlett-Packard Company 14.4%Toshiba Corporation 7.1%Dell Computer Company 5.9%International Business Machines Corporation 2.5%Other 70.1%

Total 100%


Figure 4: Global computers & peripherals industry share: % share, by value, 2010


COMPETITIVE LANDSCAPE




The computers & peripherals market will be analyzed taking manufacturers of computer hardware and software as players. The key buyers will be taken as individual and commercial end-users, and electronic component manufacturers as the key suppliers.

The computers and peripherals industry is dominated by a number of large players such as Hewlett-Packard and Dell. The concentration of the industry is a continuing trend, with merger and acquisition activity being common. This avoids threats from emerging companies, but rivalry is intense between the major players.

The global computers and peripherals industry is composed of the computer hardware market and the computer storage and peripherals market. Manufacturers have a wide variety of potential customers since the use of such products is pervasive within domestic and professional environments. Technological expertise is essential for entry to this industry. Companies within this industry tend to invest in considerable research and development activity in order to develop novel products that supersede those of competitors. Such R&D activity usually requires significant capital outlay. Rivalry in this market is boosted due to a number of factors including high fixed costs and exit barriers.

The global computers and peripherals industry is composed of the computer hardware market and the computer storage and peripherals market, and as such, encompasses diverse activities that range from serving the business infrastructure requirements of companies to providing PCs and peripherals to individual consumers. The presence of such a wide variety of potential customers weakens buyer power considerably. Major buyers of products in this industry are business customers for whose operations such equipment is often indispensable. Business customers often have supply contracts with individual manufacturers and therefore often incur significant switching costs. Brand image can play an important role in this industry, with companies such as Hewlett-Packard relying upon their strong brand image to maximize sales. However, although brand awareness is high, customers are generally more interested in the quality and specifications of individual products, and customer loyalty is therefore relatively low. Buyer power within this industry is assessed as moderate overall.

Suppliers to the computers and peripherals industry generally include electronic component manufacturers. The majority of components supplied to this industry display minimal differentiation and, in order to reduce costs, are often sourced from companies operating from low-cost manufacturing regions. Manufacturers do not incur significant costs when switching basic component suppliers and, in such instances, supplier power is low. However, a number of companies such as Hewlett-Packard and Dell are dependent on one or a limited number of suppliers for some sophisticated components. Consequently, if any of such suppliers were to cancel or materially change contracts or commitments, or fail to meet the quality or delivery requirements needed to satisfy customer orders for products, players could lose customer orders.




As a result, players would be unable to develop or sell certain products cost-effectively or on a timely basis, if at all, and have significantly decreased revenues and earnings, which would have an adverse effect on business, results of operations and the financial condition of market players' business. Such suppliers have disproportionately high supplier power. A number of players operating in this industry put significant pressure on suppliers by manufacturing components and selling them on to other players or using them in their own products. Supplier power is assessed as strong overall.

Technological expertise is essential for entry to this industry, with capital being required for a skilled workforce. Market players tend to benefit from significant scale economies in manufacturing. Furthermore, those most successful within the industry diversify their operations into the many sectors involved and, as a result, tend to be large conglomerates such as IBM and Toshiba. However, on a smaller level, certain companies have gained leadership by specializing in a particular product group, such as Cisco Systems’ specialization in IP networking systems. Manufacturers within this industry must continually invest in research and development in order to bring improved products to the market. Such R&D activity usually requires significant capital outlay. For example, Hewlett-Packard Company’s expenditures for research and development were $3.6 billion in fiscal year 2007. The environment of this industry is fast-paced. Some larger companies attempt to remain ahead of technological advancements through technological alliances. Many products are patent protected and often manufactured and sold under license. Protection of intellectual property by defending patents is an additional cost for manufacturers. Companies rely on patent, copyright, trademark and trade secret laws and contract rights to establish and maintain proprietary rights in technology and products. Although customer loyalty to specific manufacturers is relatively low, brand awareness is high, which restricts the entry of new players into the industry somewhat. Overall, there is a weak likelihood of new entrants to this industry.

The threat of substitutes within the computers and peripherals industry is moderate, with much of the functionality of modern PCs being unavailable through alternative means. However, one of the largest threats to the consumer PC market lies within the sphere of gaming, especially with respect to next generation games consoles, whose increased specifications are attracting gamers away from the PC format. Mobile phones and similar hand-held devices with email and web browser capability can also supplant much of the communication role of PCs. Televisions are also starting to offer online services and increased functionality.

The computers and peripherals industry is dominated by a number of large players such as Hewlett-Packard and Dell. The concentration of the industry is a continuing trend, with merger and acquisition activity being common. There are significant pricing pressures within the industry that act to intensify rivalry between players. However, a number of companies attempt to offset such pressures by outsourcing the manufacturing of certain computer components to contract manufacturers in the Asia-Pacific region. Rapidly improving technology in both size and functionality combined with the demands of new software upon platform requirements, leads to relatively short product-lifecycles for PC hardware. Although bolstering overall computer sales, this places significant demands upon manufacturers to keep up with rapidly changing consumer trends, whilst generating a fiercely competitive environment.




A number of larger players within this industry are large conglomerates (e.g. IBM and Toshiba). Such companies have highly diversified operations, which alleviates rivalry to an extent. Overall, rivalry within this industry is assessed as moderate.

LEADING COMPANIES



LEADING COMPANIES

Dell Inc.

Table 5: Dell Inc.: key facts Head office: One Dell Way, Round Rock, Texas 78682, USA Telephone: 1 512 338 4400 Website: www.dell.com Financial year-end: January Ticker: DELL Stock exchange: NASDAQ National Market Source: company website D A T A M O N I T O R

Dell ("the company") designs, develops, manufactures, markets, sells and supports information technology systems and services. The company conducts business in several countries located across the Americas, Europe, the Middle East, Asia and other geographic regions.

The company's operations are primarily segmented based on the customers: large enterprise; public; small and medium business; and consumer.

Large enterprise customers are the large global and national corporate businesses. Public customers comprise educational institutions, government, health care, and law enforcement agencies that operate in their particular communities. SMB segment is focused on small and medium-sized businesses and the segment offers open and affordable solutions, products, and customizable services and solutions for the segment. Consumer segment caters to the needs of entertainment, mobility, gaming, and design.

Dell's products and service offering can further be categorized into: enterprise solutions; services; software and peripherals; and client products.

Enterprise solutions primarily include servers, networking, and storage products. The servers are offered as the PrimaryEdge line and in addition, Dell also offers customized server solutions for large data center customers. Storage solutions include a comprehensive portfolio of Dell-branded and third-party advanced storage solutions, including storage area networks, network-attached storage, direct-attached storage, disk and tape backup systems, and removable disk backup.

Services are offered as a broad range of configurable IT and business services, including infrastructure technology, consulting and applications, and product-related support services. The company offers three categories of services which are transactional, outsourcing and project-based.

LEADING COMPANIES



Transactional services are closely associated with the sale of servers, storage, and client hardware and include support services, managed deployment, enterprise installation, and configuration services. The outsourcing services encompass data center and systems management, network management, life cycle application development and management services, and business process outsourcing services. Project-based services are short-term services offered to the clients, including IT infrastructure, applications, business process, and business consulting.

Software and peripheral products include Dell-branded printers and displays and also third-party peripheral products such as printers, televisions, notebook accessories, mice, keyboards, networking and wireless products, digital cameras, and other products. The company also offers third-party software products like operating systems, business and office applications, anti-virus and related security software, entertainment software, and products in other categories. In addition, the company operates an online software store called "Dell Download Store", targeting the consumers and small and medium-sized businesses.

Client products comprise mobility and desktop PCs. Laptops, net books, tablets and smart phones are some of the mobility products offered by Dell to the commercial and consumer customers. While Latitude, Vostro, and Dell Precision lines of mobility notebooks are offered to the commercial customers; Inspiron, XPS and Alienware lines of laptops are offered for consumer market. Dell's desktops PCs product line consists of the Optiplex, Precision, and Vostro lines, that target commercial customers and the Inspiron, XPS, and Alienware lines, primarily designed for consumer markets.

The company operates Dell Financial Services which offers various customer financial services for business and consumer customers in the US. Dell Financial Services offers financial services, including originating, collecting, and servicing customer receivables related to the purchase of Dell products. Additionally, Dell Financial Services also offers private label credit financing programs, through an unrelated, nationally chartered bank and also offers leases and fixed-term financing to commercial customers.

Dell has manufacturing facilities in Austin, Texas; Penang, Malaysia; Xiamen, China; Hortolandia, Brazil; and Chennai, India. The client products sold under Dell brand are sourced primarily from third parties.

Key Metrics

The company recorded revenues of $52,902 million in the fiscal year ending January 2010, a decrease of 13.4% compared to fiscal 2009. Its net income was $1,433 million in fiscal 2010, compared to a net income of $2,478 million in the preceding year.

LEADING COMPANIES



Table 6: Dell Inc.: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 55,788.0 57,420.0 61,133.0 61,101.0 52,902.0Net income (loss) 3,602.0 2,583.0 2,947.0 2,478.0 1,433.0Total assets 23,252.0 25,635.0 27,561.0 26,500.0 33,652.0Total liabilities 19,205.0 21,196.0 23,826.0 22,229.0 28,011.0Employees 65,200 83,000 76,500 76,500 94,300 Source: company filings D A T A M O N I T O R

Table 7: Dell Inc.: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 6.5% 4.5% 4.8% 4.1% 2.7%Revenue growth 13.6% 2.9% 6.5% (0.1%) (13.4%)Asset growth 0.2% 10.2% 7.5% (3.8%) 27.0%Liabilities growth 14.8% 10.4% 12.4% (6.7%) 26.0%Debt/asset ratio 82.6% 82.7% 86.4% 83.9% 83.2%Return on assets 15.5% 10.6% 11.1% 9.2% 4.8%Revenue per employee $855,644 $691,807 $799,124 $798,706 $560,997Profit per employee $55,245 $31,120 $38,523 $32,392 $15,196 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Figure 5: Dell Inc.: revenues & profitability

Source: company filings D A T A M O N I T O R

Figure 6: Dell Inc.: assets & liabilities


LEADING COMPANIES



Hewlett-Packard Company

Table 8: Hewlett-Packard Company: key facts Head office: 3000 Hanover Street, Palo Alto, California 94304 1185,USA Telephone: 1 650 857 1501 Fax: 1 650 857 5518 Website: www.hp.com Financial year-end: October Ticker: HPQ Stock exchange: New York Source: company website D A T A M O N I T O R

Hewlett-Packard (HP or "the company") is one of the largest technology companies in the world. Its offerings span printing, personal computing, software, services and information technology (IT) infrastructure. The company offers its products across the world, and operates development and manufacturing facilities in the US, the UK, Israel, Ireland, the Netherlands, China, India, Japan and Singapore.

HP operates through seven business segments: the personal systems group (PSG), services, the imaging and printing group (IPG), enterprise storage and servers (ESS), HP software, HP financial services (HPFS), and corporate investments. The company organizes services, ESS, and HP software segments as part of its HP enterprise business.

The HP enterprise business provides servers, storage, software and IT services to enterprise and mid-market business customers. Its IT systems and services are primarily standard-based and feature differentiated technologies applicable in several areas, including power and cooling, unified management, security, virtualization and automation.

The services segment offers consulting, outsourcing and technology services across infrastructure, applications and business process domains. The segment is divided into four main business units: infrastructure technology outsourcing, technology services, applications services and business process outsourcing (BPO).

LEADING COMPANIES



Infrastructure technology outsourcing provides services that streamline and optimize the clients' infrastructure in areas, including the data center and the workplace (desktop); network and communications; and security, compliance and business continuity. It also offers a set of managed services, providing a cross-section of the company's broader infrastructure services for smaller discrete engagements.

The technology services segment offers consulting and support services, as well as warranty support across HP's product lines. HP's service areas include mission critical services, converged infrastructure services, networking services, data center transformation services and infrastructure services for storage, server and unified communication environments. The company's technology services offerings are available in the form of service contracts, pre-packaged offerings (HP care pack services) or on an individual basis.

Application services offer full lifecycle products encompassing application development, testing, modernization, system integration, maintenance and management.

The company offers BPO services including both industry-specific and cross-industry solutions. Its cross-industry solutions include an array of enterprise shared services, customer relationship management services, financial process management services and administrative services.

ESS provides a broad portfolio of storage and server solutions including industry standard servers, business critical systems and storage.

The industry standard servers include primarily entry-level and mid-range ProLiant servers, which run mainly on Windows, Linux and Novell operating systems and use Intel and Advanced Micro Devices (AMD) processors. The business spans a range of product lines that include pedestal-tower servers, density-optimized rack servers and HP's BladeSystem family of server blades.

The business critical systems include HP Integrity servers based on the Intel Itanium-based processor that run HP-UX, Windows and OpenVMS operating systems, as well as HP Integrity NonStop solutions. These also include HP's scale-up x86 ProLiant servers with more than four processors. In addition, the company continues to support the HP9000 servers and HP AlphaServers with offers available to upgrade these systems to current HP Integrity systems. During 2010, HP introduced new Integrity blade servers and the Superdome 2 server solution based on the BladeSystem architecture.

ESS segment's storage offerings include entry-level, mid-range and high-end arrays, storage area networks, network attached storage, storage management software and virtualization technologies, as well as StoreOnce data reduplication solutions, tape drives, tape libraries and optical archival storage.

LEADING COMPANIES



HP software provides enterprise and service-provider software and services. Its portfolio consists of enterprise IT management software, information management and business intelligence solutions, and communications and media solutions.

Enterprise IT management software include support and professional services for managing IT infrastructure, operations, applications, IT services, and business processes. These solutions also include tools to automate data center operations and IT processes. The company markets them as the HP business technology optimization suite, and provides them in the form of traditional software licenses and, in some cases, through a software-as-a-service (SAAS) distribution model.

Information management and business intelligence solutions include information data strategy, enterprise data warehousing, data integration, data protection, archiving, compliance, e-discovery and records management products.

HPFS provides a range of value-added financial life-cycle management services to support and enhance HP's global product and service solutions. The group offers leasing, financing, utility programs and asset recovery services, as well as financial asset management services for global and enterprise customers. HPFS also provides an array of specialized financial services to SMBs, and educational and governmental entities.

Key Metrics

The company recorded revenues of $126,033 million in the fiscal year ending October 2010, an increase of 10.0% compared to fiscal 2009. Its net income was $8,761 million in fiscal 2010, compared to a net income of $7,660 million in the preceding year.

Table 9: Hewlett-Packard Company: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 91,658.0 104,286.0 118,364.0 114,552.0 126,033.0Net income (loss) 6,198.0 7,264.0 8,329.0 7,660.0 8,761.0Total assets 81,981.0 88,699.0 113,331.0 114,799.0 124,503.0Total liabilities 43,837.0 50,173.0 74,389.0 74,282.0 83,722.0Employees 156,000 172,000 321,000 304,000 324,600 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Table 10: Hewlett-Packard Company: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 6.8% 7.0% 7.0% 6.7% 7.0%Revenue growth 5.7% 13.8% 13.5% (3.2%) 10.0%Asset growth (5.4%) 8.2% 27.8% 1.3% 8.5%Liabilities growth 39.3% 14.5% 48.3% (0.1%) 12.7%Debt/asset ratio 53.5% 56.6% 65.6% 64.7% 67.2%Return on assets 7.3% 8.5% 8.2% 6.7% 7.3%Revenue per employee $587,551 $606,314 $368,735 $376,816 $388,272Profit per employee $39,731 $42,233 $25,947 $25,197 $26,990 Source: company filings D A T A M O N I T O R

Figure 7: Hewlett-Packard Company: revenues & profitability


LEADING COMPANIES



Figure 8: Hewlett-Packard Company: assets & liabilities


LEADING COMPANIES



IBM Global Services

Table 11: IBM Global Services: key facts Head office: 1 New Orchard Road, Armonk, New York 10504, USA Telephone: 1 914 499 1900 Fax: 1 914 765 6021 Website: www.ibm.com Financial year-end: December Source: company website D A T A M O N I T O R

IBM Global Services, a division of IBM, is a global technology and business services provider. The company offers technology outsourcing, transformation, consulting and system integration services. It leverages IBM's presence in over 170 countries across North America, Latin America, Europe, the Middle East, Africa and the Asia-Pacific.

IBM Global Services is organized into two business divisions: Global Technology Services (GTS) and Global Business Services (GBS).

GTS primarily provides IT infrastructure services and business process services. Its different offerings include strategic outsourcing services, integrated technology services, business transformation outsourcing and maintenance.

GTS's strategic outsourcing offers IT services integrated with business insight to handle clients' processes and operations outsourcing.

Its integrated technology services offerings help clients access, manage and support their technology infrastructures. Their portfolios of offerings include service product lines which complement hardware from IBM's systems and technology business, and software offerings from the software business.

The business transformation outsourcing includes a range of products from standardized processing platforms and business process outsourcing (BPO) through transformational offerings including strategic change and operation of the client's business processes, applications and infrastructure.

GTS's maintenance business offers a number of support services from product maintenance through solution support to maintain and improve the availability of clients' IT infrastructure.

LEADING COMPANIES



GBS provides professional services and application outsourcing services leveraging IBM's industry and business-process expertise. Its offerings include consulting and systems integration and application management services.

The consulting and systems integration business provides services for client relationship management, financial management, human-capital management, business strategy and change and supply-chain management needs.

The application management services business provides application development, management, maintenance and support services for packaged software, as well as custom and legacy applications.

Key Metrics

The company recorded revenues of $99,870 million in the fiscal year ending December 2010, an increase of 4.3% compared to fiscal 2009. Its net income was $14,833 million in fiscal 2010, compared to a net income of $13,425 million in the preceding year.

Table 12: IBM Global Services: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 91,424.0 98,786.0 103,630.0 95,758.0 99,870.0Net income (loss) 9,492.0 10,418.0 12,334.0 13,425.0 14,833.0Total assets 103,234.0 120,431.0 109,524.0 109,022.0 113,452.0Total liabilities 74,728.0 91,962.0 95,940.0 86,267.0 19,280.0 Source: company filings D A T A M O N I T O R

Table 13: IBM Global Services: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 10.4% 10.5% 11.9% 14.0% 14.9%Revenue growth 0.3% 8.1% 4.9% (7.6%) 4.3%Asset growth (2.4%) 16.7% (9.1%) (0.5%) 4.1%Liabilities growth 2.9% 23.1% 4.3% (10.1%) (77.7%)Debt/asset ratio 72.4% 76.4% 87.6% 79.1% 17.0%Return on assets 9.1% 9.3% 10.7% 12.3% 13.3% Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Figure 9: IBM Global Services: revenues & profitability


Figure 10: IBM Global Services: assets & liabilities


LEADING COMPANIES



Toshiba Corporation

Table 14: Toshiba Corporation: key facts Head office: 1-1 Shibaura 1 chome, Minato-ku, Tokyo, 105 8001, JPN Telephone: 81 3 3457 4511 Fax: 81 3 3456 1631 Website: www.toshiba.com Financial year-end: March Ticker: 6502 Stock exchange: Tokyo Source: company website D A T A M O N I T O R

Toshiba Corporation (Toshiba or 'the company') manufactures and sells a range of electrical and electronic products. The company's product covers personal and professional computing systems, telecommunications and medical equipment, industrial machinery, consumer appliances, electronic components, and semiconductors. The company operates in Asia, America, Australia, Africa and Europe.

The company operates through five business segments: digital products, social infrastructure, electronic devices, home appliances and others.

The digital products segment includes visual products company, storage products company, digital products and network company, and Toshiba TEC.

The visual products company offers Liquid Crystal Display (LCD) TVs, hard disk drives and Digital Versatile Disc (DVD) recorders, Blu-ray Disc recorders and players, and DVD players. Its LCD and Light Emitting Diode (LED) TVs feature picture enhancement technology to deliver superior pictures. The storage products company comprises of advanced Hard Disk Drives (HDD) and optical disc drives that support innovation across a broad range of products, from servers and data storage systems to Personal Computers (PCs), consumer electronics and automotive applications. The digital products and network company offers Notebook PCs, PC servers and business communications systems.

Toshiba TEC delivers total solutions for business-sector customers in three core business areas: retail solutions, including Point-Of-Sales systems (POS); office solutions, including multi-function peripherals; and supply chain management systems, including radio-frequency ID and barcode systems. The company also supplies inkjet print heads for professional-level high-quality printing.

LEADING COMPANIES



The social infrastructure segment includes power systems company, transmission distribution and industrial systems company, social infrastructure systems company, Toshiba elevator and building systems, Toshiba solutions, and Toshiba medical systems.

The power systems company delivers nuclear, thermal and hydroelectric power plants and develops new energy technologies. Toshiba, including group company Westinghouse Electric, leads the global nuclear industry with capabilities in both boiling water reactors and pressurized water reactors. Its main products include nuclear power plant systems and services; hydroelectric, thermal and geothermal power generating equipment; and fuel cells.

The transmission distribution and industrial systems company supports social and industrial infrastructures, providing power distribution systems; diverse industrial systems; and transportation systems. Its new energy solutions include the SCiB rechargeable battery; solar photovoltaic systems; and smart grid systems.

The social infrastructure systems company provides IT systems to infrastructure management systems, water and sewage treatment and environmental systems, radio application systems, and broadcasting and network systems. It also provides automation systems for financial and logistics systems. The Toshiba elevator and building systems provide elevators and escalators.

The Toshiba solutions offer consultation, design, development, implementation, outsourcing and maintenance services for software. Toshiba medical systems offer products such as X-ray systems, computed tomography systems, ultrasound systems and magnetic resonance imaging systems.

The electronic devices segment includes semiconductor company and Toshiba mobile display.

The company's semiconductor business focuses on developing high-performance memories, system LSIs and discrete products for growth markets, including digital AV products, mobile products and automotive electronics. Its main products include NAND flash memories, Solid State Drives (SSDs), multi-layer Multi-Chip Package (MCPs), SoCs for multimedia, custom SoCs, MCUs, analog ICs, complementary metal oxide semiconductor (CMOS) image sensors, general-purpose CMOS logic, small signal devices, power devices and opto-semiconductor devices.

The Toshiba mobile display company focuses on small-and-medium-sized high-definition displays. It provides TFT LCDs for mobile, automotive and industrial use. The company is also developing 3D technologies and products, including auto stereoscopic high-definition displays.

The home appliances segment includes Toshiba Consumer Electronics Holdings, automotive systems, network services, new lighting systems, smart community, and materials and devices division.

LEADING COMPANIES



The Toshiba Consumer Electronics Holdings addresses daily needs, with home appliances, air-conditioners and lighting fixtures. The company's automotive systems division co-ordinates and promotes the automotive-related businesses of Toshiba's in-house and group companies. The network services division offers internet services and also provides gateway technology for creating collaborative platforms between corporate mission-critical systems and mobile websites. Other services include firmware download services that allow users of digital products to download and update firmware over the internet.

The new lighting systems division offers energy efficient, environmental friendly LED lighting products. The smart community division offers a full-service package that embraces consulting, system proposals, provision of equipment and systems, and project management. It also provides comprehensive, integrated system solutions encompassing power supply and distribution, information and security systems, water systems, transportation systems, and medical and hospital information system.

The materials and devices division's main products include thermal print heads; magnetrons for microwave ovens; tungsten and molybdenum products; phosphor application products; high purity sputtering targets; amorphous magnetic parts; fine ceramics; visible light responsive photo catalyst and DNA chips.

The others segment comprises various logistics services.

Key Metrics

The company recorded revenues of $72,659 million in the fiscal year ending March 2010, a decrease of 4.1% compared to fiscal 2009. Its net loss was $224 million in fiscal 2010, compared to a net loss of $3,912 million in the preceding year.

Table 15: Toshiba Corporation: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 72,225.8 81,025.2 87,307.0 75,766.9 72,659.5Net income (loss) 890.2 1,564.7 1,450.7 (3,911.7) (224.3)Total assets 53,821.9 67,540.0 67,581.9 62,089.2 62,066.2Total liabilities 42,411.4 54,920.9 55,942.6 56,995.8 52,987.1Employees 172,000 191,000 198,000 199,000 204,000 Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Table 16: Toshiba Corporation: key financials (¥) ¥ million 2006 2007 2008 2009 2010Revenues 6,343,506.0 7,116,350.0 7,668,076.0 6,654,518.0 6,381,600.0Net income (loss) 78,186.0 137,429.0 127,413.0 (343,559.0) (19,700.0)Total assets 4,727,113.0 5,931,962.0 5,935,637.0 5,453,225.0 5,451,200.0Total liabilities 3,724,948.0 4,823,641.0 4,913,372.0 5,005,879.0 4,653,800.0 Source: company filings D A T A M O N I T O R

Table 17: Toshiba Corporation: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 1.2% 1.9% 1.7% (5.2%) (0.3%)Revenue growth 8.7% 12.2% 7.8% (13.2%) (4.1%)Asset growth 3.4% 25.5% 0.1% (8.1%) 0.0%Liabilities growth (0.8%) 29.5% 1.9% 1.9% (7.0%)Debt/asset ratio 78.8% 81.3% 82.8% 91.8% 85.4%Return on assets 1.7% 2.6% 2.1% (6.0%) (0.4%)Revenue per employee $419,917 $424,216 $440,945 $380,738 $356,174Profit per employee $5,176 $8,192 $7,327 ($19,657) ($1,100) Source: company filings D A T A M O N I T O R

LEADING COMPANIES



Figure 11: Toshiba Corporation: revenues & profitability


Figure 12: Toshiba Corporation: assets & liabilities


MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2015, the global computers & peripherals industry is forecast to have a value of $816.1 billion, an increase of 38.2% since 2010.

The compound annual growth rate of the industry in the period 2010–15 is predicted to be 6.7%.

Table 18: Global computers & peripherals industry value forecast: $ billion, 2010–15 Year $ billion € billion % Growth2010 590.7 444.8 10.5%2011 635.7 478.8 7.6%2012 679.4 511.6 6.9%2013 721.5 543.4 6.2%2014 767.2 577.7 6.3%2015 816.1 614.6 6.4%

CAGR: 2010–15 6.7%


Figure 13: Global computers & peripherals industry value forecast: $ billion, 2010–15


APPENDIX



APPENDIX

Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including: - National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases

Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

APPENDIX



Industry associations

Computer & Communications Industry Association

666 11th Street, NW, Washington, DC 20001, USA Tel.: 1 202 783 0070 Fax: 1 202 783 0534 www.ccianet.org

Storage Networking Industry Association

500 Sansome Street, Suite #504, San Francisco, CA 94111, USA Tel.: 1 415 402 0006 Fax: 1 415 402 0009 www.snia.org

Related Datamonitor research

Industry Profile

Global Computers Storage & Peripherals

Global Software & Services

Global Systems Software

Global IT Services

APPENDIX



Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

ABOUT DATAMONITOR



ABOUT DATAMONITOR

The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries.

Combining our industry knowledge and experience, we assist over 6,000 of the world’s leading companies in making better strategic and operational decisions.

Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment.

Premium Reports

Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas.

Summary Reports

Our series of company, industry and country profiles complements our premium products, providing top-level information on 30,000 companies, 3,000 industries and 100 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts.

Datamonitor consulting

We hope that the data and analysis in this profile will help you make informed and imaginative business decisions. If you have further requirements, Datamonitor’s consulting team may be able to help you. For more information about Datamonitor’s consulting capabilities, please contact us directly at [email protected].

Copyright of Computers & Peripherals Industry Profile: Global is the property of Datamonitor Plc and its

content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's

express written permission. However, users may print, download, or email articles for individual use.

Market Overview, Computer and Peripheral

Documents

market segmentation

company recorded

revenues net

business process

peripherals

hp enterprise

computer hardware

peripherals