News

Gartner Predicts PC Market Consolidation

Analysts at Gartner expect tough times ahead for the PC industry.

In a report released this week, the IT analysis firm forecasts that three of the top 10 global PC manufacturers will be exiting the market by 2007 as PC shipment growth slows and profit margins contract.

"With PC replacements still in full swing, 2005 should be a reasonably strong year for PC vendors," said Leslie Fiering, research vice president for Gartner's Client Platforms group. "However, the end of the replacement cycle is likely to strain viability for even the largest PC vendors in 2006 and beyond."

Of the top 10, only Dell is consistently profitable. Gartner singled out the PC divisions of HP and IBM as vulnerable to being spun off if they drag too heavily on margins and profitability. The other seven companies rounding out the 10 largest PC manufacturers are Fujitsu/Fujitsu Siemens, Toshiba, Acer, NEC, Legend, Gateway and Apple Computer.

Gartner forecasts unit shipment growth will fall from an annual average from 2003 to 2005 of 11.3 percent to an annual average from 2006 to 2008 of 5.7 percent. For the same time periods, Gartner forecasts revenue growth will fall from an annual average of 4.7 percent to an annual average of 2 percent.

About the Author

Scott Bekker is editor in chief of Redmond Channel Partner magazine.

Featured

  • Microsoft Bolsters Windows IoT with NXP and SQL Server Support

    Microsoft's Internet of Things (IoT) product line is continuing to grow, with a few new developments highlighted this week.

  • Tamper Protection Now Available to Microsoft Defender ATP Subscribers

    The Microsoft Defender Advanced Threat Protection (ATP) E5 subscription plan now has an optional "tamper protection" security feature, Microsoft announced on Monday.

  • Exploring OCR, a New Way To Get Data into Excel

    Microsoft recently added a new optical character recognition feature to Excel that lets users import data from a photograph taken from a smartphone. Here's how to use it.

  • Microsoft Authenticator App To Get Real-Time Phishing Protections

    Microsoft is working on adding capabilities to its Microsoft Authenticator app to help defeat security breaches enabled by advanced attack techniques, including phishing and man-in-the-middle methods.

comments powered by Disqus

Office 365 Watch

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.