factors that are responsible for the recent upsurge in demand for technologically advanced products like laptops

Laptop Market

Introduction

The introduction of modern technology, including the diffusion of the internet, has increased the demand for laptops globally. The growth in the demand for laptops is also associated with the extensive use of social media, especially among the youth (Cooke, 2013). This paper delves into examining the factors that are responsible for the recent upsurge in demand for technologically advanced products like laptops. It further analyses the global outlook of the demand and supply of laptops in the next five years.

Customer preference

Customers are vital to the success of any business. Key players in the laptop market are increasingly researching to understand the dynamic needs of customers, including their preferences for laptops. Recent reports have shown that laptop consumers desire products that have higher specifications. The current consumer patterns in the purchase of laptops reveal that most users have a higher preference for “2 in 1” laptop models. In contrast, the trends also suggest that the traditional PC (personal computer) market is slowly growing (Grand View Research, 2018). On the other hand, hybrid laptops, including HP’s Envy X2 and Microsoft’s Surface Book 2, have attracted a high preference among customers since the laptops offer both tablet and laptop features. This shows that customer preference for laptops is shifting towards portable and easy to carry tablets and laptops which are optimized for longer battery life.

Nonetheless, despite the growing preference for “all-in-one laptops,” traditional laptops remain to be highly preferred, especially in emerging markets like Africa, especially among developing countries. Several factors account for this continued demand for conventional laptops including the idea that these laptops provide high-end features such as powerful processors, big screens, adequate memory for huge tasks as well as lots of storage space. (Cooke, 2013). For example, market research on customer preference for laptops indicates that models between 15.0 inches and 16.9 inches have advanced storage options compared to new models (Grand View Research, 2018). Consequently, the growth of the gaming industry and video editing field have increased the demand for traditional laptops, whereby users prefer laptops with large screens since they serve as a no-compromise substitute for desktop PCs.

Major Determinants of the Demand for Laptops  

The major determinants for the global demand for laptops include the rising disposable income, the growing penetration of the internet, increased awareness of the emergence of new technologies among customers, the surge in the demand for gaming devices as well as the booming demand for eCommerce (Grand View Research, 2018). Over the last decade, there has been an increase in awareness about the emergence of new technologies and the benefits that come with advanced technology.

The internet is supporting most aspects of individuals’ lives, including communication and entertainment. One area where the benefits of new technologies in promoting business activities are evident is marketing. Organizations have recognized the benefits associated with digital marketing and are relying on eCommerce to increase their customer reach and, in turn, increase their profitability (Grand View Research, 2018). Therefore, the increased awareness of eCommerce has contributed to the growing demand for laptops from both users and business entities.

Secondly, the gaming industry has also demonstrated significant growth trends over the last couple of years. It is projected that the gaming industry will continue to grow over the next three years by about 22 percent (Grand View Research, 2018). Similarly, this trend is supported by the introduction of augmented and virtual reality, the rising demand for laptops for gaming among young people in addition to the emergence of eSports.

The Supply Side of the Market

The global laptop market is highly competitive. Several companies across the globe serve as key players in this industry (Goolsbee, 2011). In order to gain a competitive edge, these companies continue to invest heavily in the research and development of more advanced products that offer cutting-edge features. Major firms in the market include Hewlett & Packard, the Lenovo group, Apple, Dell, and the Acer Group. The price influences the supply of laptops in the global market. The lowest price range for laptops is below USD 500, with the most expensive models reaching over USD 2000 (Goolsbee, 2011). In other words, when the price of laptops increases, supply also increases, and hence, the speculation about the rise in the price of laptops in the future. This has, in turn, contributed to the decline in the supply of the products in the present since manufacturers expect to make more sales in the future.

Outlook of the Global Laptop Market

Despite the increased popularity of competitive products, such as tablets and smartphones, the global laptop market is poised for healthy growth during the projected time period. The global market for laptops is anticipated to reach over USD 108 million over the next five years at an annual growth rate of 0.4 percent (Grand View Research, 2018). The growth of the laptop market has been directly linked to increased urbanization, growth in the consumers’ propensity to spend, particularly among consumers from middle and upper-middle classes, in addition to the changing lifestyles of customers.

Conclusion

The emergence of digitization and advanced technology, including the diffusion of the internet, has increased the demand for laptops globally. The growth in the demand for laptops is also associated with the extensive use of social media, especially among the youth. The outlook of the global laptop market demonstrates an increase in the demand for laptops, which has forced manufacturers to employ huge R&D investments to increase their competitiveness in the market

References

Cooke, P. (2013). Global production networks and global innovation networks: Stability versus growth. European Planning Studies, 21(7), 1081-1094.

Goolsbee, A. (2011). Competition in the computer industry: Online versus retail. The Journal of Industrial Economics, 49(4), 487-499.

Grand View Research. (October 2018). Laptop Market Size Worth $108.91 Billion by 2025. Retrieved from: https://www.grandviewresearch.com/press-release/global-laptop-market