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Computer makers face slowdown, firm predicts - 11/30/04


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Computer makers face slowdown, firm predicts - 11/30/04
Topic: Business 10:03 am EST, Nov 30, 2004

] Slower growth and reduced profits will likely squeeze
] three of the nation's top 10 personal computer
] manufacturers out of the market by 2007, a research firm
] predicted Monday.
] While manufacturers' shipments increased by double digits
] in the past few years, tougher times lie ahead, according
] to Gartner Inc.
] Gartner did not name any candidates for departure but
] suggested many are vulnerable. Dell is the only
] consistently profitable global computer vendor in the
] past several years, Gartner said.
] The top 10 worldwide vendors, by units shipped, are Dell,
] Hewlett-Packard Co., International Business Machines
] Corp., Fujitsu Ltd., Fujitsu Siemens Computers, Toshiba
] Corp., NEC Corp., Apple Computer Inc., Lenovo Group Ltd.
] and Gateway Inc.
] Personal computer growth, by unit, is forecast to average
] 5.7 percent annually from 2006 through 2008, according to
] Gartner, half the 11.3 percent average of 2003 through
] 2005.
] "With PC replacements still in full swing, 2005 should be
] a reasonably strong year for PC vendors," said Leslie
] Fiering, a research vice president with Gartner.
] "However, the end of the replacement cycle is likely to
] strain viability for even the largest PC vendors in 2006
] and beyond."
] The personal computer divisions of Hewlett-Packard and
] IBM are vulnerable to being spun off if their drag on
] margins and profitability are deemed too great by their
] parent companies, Gartner said.

Another silly Gartner report?

Computer makers face slowdown, firm predicts - 11/30/04

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