Gartner: three of top 10 PC manufacturers will exit market by 2007

“With slower growth rates and reduced profit margins, the PC industry will face vendor consolidation, with three of the top 10 PC manufacturers exiting the market by 2007, according to Gartner Inc. While the market has registered double-digit shipment growth the past few years, tougher times lie ahead,” Enterprise Networks & Servers reports.

“Currently, the top 10 worldwide PC vendors, by unit shipment, are Dell, HP, IBM, Fujitsu, Fujitsu Siemens, Toshiba, NEC, Apple Computer, Lenovo Group and Gateway. Of the top 10 worldwide vendors, only Dell has consistently been profitable in the past several years,” Enterprise Networks & Servers reports.

Full article here.

23 Comments

  1. By 2010 there will be another serious player in the game – China. Dell has already stopped selling their cheapest computers there because they could not compete on price! I believe that China will, in a few years, flood the US market with very cheap computers based on Linux. At that time the shake out will start again – big time. Think about $199 computers at Wal-Mart. Or a notebook for $299. A good indication of when this shift moves to full swing will be when iPods and iTunes work on Linux.

    I believe that the big PC players will retain a basic desktop, but only to sell profitable notebooks or servers.

    Apple’s position is so different from the others that I believe they have the most protection moving to 2010. They are going to continue to develop their version of the digital hub, mature OS X (XI?) and bring out a long list of “one more things” that consumers will want.

  2. Compare Apple with Porsche, .. is the no. x00 or so vendor but they are making good products and profit. Apple has not been so strong as at this very moment for many many years !

  3. Apple has been quite consistently profitable during this decade at least, so I’m not sure what the author is referring to there.

    Other than “beleaguered” Gateway/eMachines, I’m not not sure who else from the top 10 might be a prime candidate for going belly up though. On the other end of the spectrum, I would wager that Apple will be in the top 5 consistently by the end of 2005 though for sure.

  4. Three of the top ten will exit the market, the other seven will be buying from China, and only one will not be selling shiste.

    This post is brought to you by the magic word “doing” — or is it doing as in boing. We’ll never know.

  5. I had no idea who Lenovo was until I just googled them.

    Now I know, I don’t see it being them.

    Gateway are obvious losers, the world should only have one company called Fujitsu – so I’m guessing one of the two (my guess is Fujitsu itself).

    Which leaves us looking for a third candidate – Toshiba is protected becuase of its laptop reputation, IBM and HP have corporate sales to keep them going, and Dell has enough corporate and government sales to stay alive.

    So NEC it is then.

  6. Merges rather than an exit from the market might take care of all of the attrition. You have to wonder about the timeline analysts use. These companies are all fairly strong. Even with crap from china most will stay strong. HP, IBM, and Apple aren’t necessarily competing on price to begin with, and likely have no interest in doing so. Apple is hugely profitable. I think Dell’s in more trouble than anyone except Gateway from chinese competition.

  7. Actually Apple has been very profitable.

    They are opening stores all over, 4.6 billion in cash etc.

    Not on the scale of other companies in market share but that doesn’t matter.

    All these other PC companies took a dive to the bottom in thier quality and prices to gain market share and now the market is flooded.

    Dell is the star for now, but before it was IBM then Compaq, then Gateway.

    The rich get richer and buy Mac’s, the poor get poorer and buy $400 Dells and finally WebTV’s.

  8. Pretty straight forward… take your pick:

    Fujitsu, Fujitsu Siemens, Toshiba, NEC, Gateway

    I’m surprised Gateway is still a top 10 player. I wouldn’t be surprised if IBM loses interest in the wintel box market also.

    PS… don’t hold your breath on dollar exchange rate staying weak. Many countries D E P E N D on a good exchange rate.

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