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HomeBusiness StrategiesSmall BusinessHow Profitable Can a Computer Hardware Business?

How Profitable Can a Computer Hardware Business?

How Profitable Can a Computer Hardware Business?
Photo by Nathan Anderson on Unsplash

According to Statista, 2021, global IT spending stands at 4.07 trillion dollars. This is a big rise from 2019’s figure which was $3.8 trillion. No doubt, the industry is projected to grow in leaps and bounds in the coming years. This means one thing: the computer parts business is now more profitable than ever for the right individuals.

There are no computers without flash memory cards, monitors, RAMs, input devices, external storage devices, you name it. Also called computer hardware parts, these components will always be in demand as long as people keep using computers. So, should you go ahead and start a computer hardware business? Not so fast… read this guide instead.

Profitability Analysis

In the world of Tech, Apple tops the list with a brand value of $352 billion. This marks a 14% increase from 2020. Microsoft and Google follow closely with brand values of $327b and $324b respectively. While these numbers can be scary for a newbie, they display the profitability potential of a computer hardware business. Sure, most people shove small players aside in pursuit of the tech juggernauts, but if you play your cards well, you will get a fair share of the global market a well.

Factors Affecting Profitability

While there’s a lot of money to be made in a computer hardware business, it can also go sideways if you don’t play your cards right. To be safe, here are things to consider:

Market size

The biggest mistake newbie businessmen make is not doing their due diligence as far as market research is concerned.  When selling computer parts, you can soar if you target the right market from the get-go. You can get the size of the market by checking statistical data from the United States Census Bureau and industry sources. Apart from the actual population of the target market, you need to know if your target clients are available. For example, a computer hardware business located in a college town will do much better than that of a small industrial town.

Target customer

In addition to market research, you need to identify your potential customers. It all starts with knowing what you intend on selling. For example, if you plan or being a retailer of new and second-hand motherboards and memory modules, you are better off targeting users who want simple upgrades. Small computer vendors who assemble computers for sale also make for great clients. Else, if you hope to include computer repair along selling components, you might want to target institutions, households, and businesses instead. 


Thirdly, your competitive edge will determine whether you will make it in the computer parts industry or not. There’s no reason to put up a physical shop right opposite a Lenovo shop or any other hardware store. The demand for computer parts may be huge but suppliers are also quite the number.

Apart from the vast array of small suppliers in your locality, online vendors are endless. Look through online and offline sources for all the computer parts businesses and make an informed choice on what to do to have a competitive edge.


If you are thinking of opening a brick-and-mortar computer shop, the location will make or break your efforts. You want to be close to your target market if you are selling parts. For example, if you are retailing things like flash memory cards, graphic cards, CPUs, and memory modules, you want to have your shop in a business part, office building, or inside an institution. Customers will always choose a nearer shop especially when they need the parts immediately.

Customer service

If you analyze every successful business out there, you will notice that customer service is at the centre of it all. According to boost hardware, in the computer hardware space, when you show your customer that you truly care about them, you can count on them to choose you over your competition. Sometimes this means making a huge sacrifice such as spending hours explaining the ins and outs of computer parts. Whatever you do that makes the customer feel important will greatly determine how much profit you make in the long run.

How profitable your computer parts business heavily depends on what you do before and during the actual running of the business. If you get the right audience, do your market research right, get a good location, offer the best customer service, and analyze the competition well, you will break even in no time. It may be years before you catch up with the tech giants but you will enjoy great market shares nonetheless.

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