Two weeks ago Reuters released an article suggesting that the PC industry was on the decline. The story referenced a report from technology research company Gartner, which had previously forecast that slower growth ahead (around 5.7% annual unit growth) will usher in a wave of consolidation. (Give them some credit for prescience; IBM's
Soon after, though, another report from Forrester research challenged the pessimistic views and projected that the global PC market would double to 1.3 billion from today's 575 million within the next five years. The dichotomy reminds me of my local weather forecasters: One is calling for snowy conditions and temperatures plummeting into the teens (which I would love for Christmas), while another is predicting rain and relatively balmy temperatures in the upper 40s.
Even if the market decides to follow the slower-growth path for the next few years, IBM's abrupt (though some might say predictable) exit from the business will leave a bigger share of the pie to former rivals. Former mergers -- such as Gateway
This morning Gateway released news that gives shareholders another reason to be excited. After previously signing deals with CompUSA and Best Buy
Once the nation's leader in terms of PC sales, Gateway's lack of focus has led to a clobbering at the hands of Dell and Hewlett-Packard. With the purchase of the value-priced eMachines brand, though, the company appears to be returning to its roots. Gateway may not recapture its glory days anytime soon. But with new distribution allies, probable market share gains in the wake of IBM's exit and recently raised guidance painting a brighter outlook, it may not be languishing in penny-stock territory much longer either.
Best Buy is one of Dell's companions in Motley Fool Stock Advisor . Find which other companies have made the cut by subscribing for six months, risk-free.
Fool contributor Nathan Slaughter is the proud owner of a new Dell computer but is not the owner of any company mentioned here.