« Factcheck for investors | Main | Opensecret »

December 08, 2004

Thinkpad is now ThinkChina

Its finally official -

Here is the rationale -

``The problem with the PC market is that margins are tight, and PCs are increasingly becoming a commodity,'' said Bryan Ma, an analyst with market researcher IDC Corp. in Singapore.

Slower growth rates and declining margins may force some manufacturers out of the market altogether, with three of the top 10 PC makers withdrawing by 2007, Gartner researcher Leslie Fiering wrote in a report dated Nov. 30.

PC unit growth is forecast to average 5.7 percent annually from 2006 through 2008, half the 11.3 percent average of 2003 through 2005, Gartner said in the same report.

PC revenue growth will average 2 percent annually from 2006 through 2008, less than half the 4.7 percent average of 2003 through 2005. Emerging markets will account for more than 60 percent of PC market growth from 2006 through 2008, Gartner said.

``Dell is about the only company globally that consistently makes a profit in the computer business,'' said Yoshihide Ohtake, a senior analyst at Shinko Securities Co. in Tokyo. ``The rest are all losing money, or finding it hard to eke out two straight years of profit.''

I wonder how soon similar dynamics will start playing out in the networking equipment market.

December 8, 2004 in Economics of IT | Permalink


TrackBack URL for this entry:

Listed below are links to weblogs that reference Thinkpad is now ThinkChina:


The comments to this entry are closed.