Beleaguered Gateway on the ropes, Gartner says PC industry due for shakeout

“The PC industry could be due for a shakeout with slowing growth and flattening revenue likely to weed out some of the smaller players in the next few years, an influential PC analyst said Tuesday. ‘We’re thinking that some vendors might exit the industry in a few years,’ said Gartner analyst Martin Reynolds. Mr. Reynolds predicts the mighty companies like Dell and Hewlett-Packard, will survive but smaller outfits like Fujitsu Siemens and Gateway could bow out in the future,” Red Herring reports.

“In the most recent quarter, Hewlett-Packard and Apple were big winners, beating earnings and sales forecasts. But direct-sales powerhouse Dell, which Mr. Reynolds expects to be around for a long time, missed revenue forecasts the company itself had issued,” Red Herring reports. “Meanwhile, small but highly visible Gateway failed to meet earnings or sales expectations. Fujitsu Siemens, Mr. Reynolds added, has failed to crack the huge U.S. market and likely won’t be making inroads soon.”

Full article here.

Related MacDailyNews articles:
Beleaguered Gateway shares plunge on weak outlook – August 16, 2005
Beleaguered Gateway announces ‘iPod Photo killer’ (with image) – October 28, 2004
Beleaguered Gateway launches ‘iMac G5 killer’ – September 21, 2004
Beleaguered Gateway to ditch consumer electronics to focus on PC box assembly – September 13, 2004
Beleaguered Gateway cuts another 1,500 jobs; has cut 22,600 jobs in last four years – April 30, 2004
Beleaguered Gateway grinds up customer and spits him out unsatisfied – April 02, 2004
Beleaguered Gateway closes all retail stores; Apple poised to open 77th outlet – April 01, 2004
Beleaguered Gateway to axe over 2,000 jobs in next few months – March 03, 2004
Beleaguered Gateway to buy eMachines; combo could be 3rd largest Wintel box assembler – January 31, 2004
Beleaguered Gateway cuts more jobs; closes Virginia manufacturing plant – September 03, 2003
Beleaguered Gateway puts on a happy face – December 16, 2002
Beleaguered Gateway desperately circling the drain – September 25, 2002


  1. Dell might have finally peaked out, with PC’s it’s a fad brand.

    First IBM, then Compaq, then Gateway, then Dell.

    Once you race to the bottom, you start sacraficing quality and support which errode into future sales.

    Dell has been exploiting a bait and switch sort of tactic, they advertise a cheap monitor and tower, but it’s a stripped box with a almost outdated CPU. You want connectivity? You want a PC to last a bit longer? You have to pay more.

    By the time you get a PC worth a darn you could have had a Mac without the virus/exploit prone Windows and M$ software.

    Dells PC’s have a life of only 2 years on average, then your back buying another one. People get tired of that trick and Windows problems.

    Guess what?

    I got a totally kickass dual processor PowerMac powerhouse computer with a life expectancy of 7 years for a yearly Total Cost of Ownership of about only $450 a year!

    Cheaper isn’t always better.

  2. can it be? Am I first? Where’s my Kewpie Doll?

    Fujitsu should buy Gateway, then you’d have three losers holding each other up, but they’d have brand recognition.

    Seriously, should Gateway go down (I believe they will eventually) I think Apple will be a net gainer of their marketshare.

    Gateway’s market strength is in consumer PCs, always has been. While the Mac has the ability to be a serious enterprise solution, it remains primarily a consumer CPU.

    Think about it. HP & Dell thrive on enterprise sales. How many enterprise customers does Gateway have? Considering the iPod halo effect and the building angst over Windows stability and security, I think a disportionate percentage of Gateway users will upgrade to Mac, when the time comes.

  3. “We’ve been hearing about competitors planning to sell direct to customers for years,” Dell spokesman Jess Blackburn said. “I’m not aware of any success stories out there besides Dell.”

    I wonder if he’s ever heard of a company called Apple which has company owned retail stores selling direct to customers world-wide. If he hasn’t, maybe that’s part of Dell’s problem.

  4. If Fujitsu fails in the USA, it won’t necessarily die as a company. Fujitsu PCs sell well in Japan – especially in the corporate sector. These PC analysts have such an USA-centric view of the world. Brands can survive and prosper outside the US market.

  5. Son: Hey, Ma! I just bought a Mac!

    Mom: Why would you want to do that, son? Everyone uses a PC these days.

    Son: Now, Ma. If everyone jumped off a cliff . . .

    MW: “reverse” as in . . . (do I really have to say it?)

  6. > I got a totally kickass dual processor PowerMac powerhouse computer with a life expectancy of 7 years for a yearly Total Cost of Ownership of about only $450 a year!

    In only 3 years, never mind 7 years, pretty much every aspect of your dual-processor PowerMac will be way out of date. It may still be running in 7 years, but don’t kid yourself that it will be state of the art.

  7. I would love Apple to take advantage of the void produced by the virus, spyware syndrome affecting PCs at the moment.

    Please, please can it be true. What scares me is that Apple are going to wait for the next best thing from Intel before they release new products. Where have we heard that before? G4, G5?

    If Apple are going to take on the PC market head on, for gods sake use currently available Intel processors. They do not need any bottlenecks in CPU supply for their first MacTel offerings.

    I want Apple to kick arse, have no supply problems and offer anyone who wants to switch with decent machines running the best OS in the world.

    Please don’t make the same mistake as before. Shipping dates for the new Intel processors scare me. Will Apple run into the same problems as with IBM and Moto if they wait for the new generation of Intel processors?

    Get the ball rolling first and implement the new designs when the become available in volume.

    ’nuff said

  8. It’s a pity that Fujitsu-Siemens isn’t breaking the US market, because the equipment is well engineered, solid and high-quality. Also great support and an elegant driver upgrade regime.

    I spec FSC stuff for my Windows using customers here in the UK, ever since HP/Compaq started constructing their systems from old egg boxes and chewing gum, and I’ll never go back to one of the so-call “big” PC manufacturers.

    So whilst Mac is the only sane choice for people with taste, if you have lost all sense of reason, give FSC a chance.

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