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from The Information Economics Press
|| Revenues and Profits of Global Information Technology Suppliers|
| By Paul A. Strassmann
Date Published: 07/2000
Online Price: $9.98
Analysis of revenues and profits of 2,272 listed global
corporations reveals that only a handful of firms - all
originating in the U.S - have captured most of the available
profits. Though U.S. firms account for only 55.4% of total
industry revenues, they capture 95.9% of all available profits.
This pattern is particularly pronounced in the computer
segment where 188 U.S. firms collect 129.7% of total
available profits and in the software segment where 1,102 U.S.
firms account for 82.4% of total available profits.
Information technology suppliers are only rarely profitable,
with 149 out of a total of 305 computer firms losing money,
and with 808 out of a total of 1503 software firms showing
negative profits. Though most of the information technology
sectors show that profit-makers are approximately balanced
against corresponding profit-losers, the extraordinary profit
gains by a very small number of firms largely explains the
aggregate economic contribution of the information technology
The findings in this paper are backed up by detailed listings
of every public information technology supplier firm,
tabulated according to their country of origin and
showing their current revenues as well as profit results.
This analysis raises doubts about most of the prevailing
euphoric views about the economic potential of information
Table of Contents
The Global Concentration of I.T. Firms
7 U.S. Share of Global Revenues and Profits
7 Sector Shares of Revenues and Profits
8 Profiles of Profitability
8 Computer Firms
10 Component Firms
11 Software Firms
12 Management Implications
13 Appendix A Revenues and Profits of Computer Firms
21 Appendix B Revenues and Profits of Component Firms
31 Appendix C Revenues and Profits of Software Firms
52 Appendix D SIC Codes Included in this Study
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