Gartner: 3 PC Vendors will be Dead and Buried by 2007


The influential Gartner Inc. research firm argues that three of the top 10 PC vendors will be out of business by 2007. The company's Leslie Fiering, research vice president for Gartner's Client Platforms group, says that while PC vendors are currently recording double-digit growth, tough times lie ahead.

"With PC replacements still in full swing, 2005 should be a reasonably strong year for PC vendors," Fiering said. "However, the end of the replacement cycle is likely to strain viability for even the largest PC vendors in 2006 and beyond."

The press release notes that "Of the top 10 worldwide vendors, only Dell has consistently been profitable in the past several years." HP and IBM's PC divisions are viewed as "vulnerable"

Fiering also noted that "Exiting the market may be the only logical choice for global vendors bleeding profits and struggling for share."

Gartner has released a research note detailing likely PC trends through 2008.

Analysis: Apple is # 8 PC vendor and is not among those named as an endangered species. Apple has also been mostly profitable since 1997, with a major loss in the final quarter of 2000 and a small loss thereafter. Our money is on Gateway foundering. Count on it.