(Length: 20 pages)

March 22, 2004

The PC Market War Heats Up

PC Vendor Update For Q1 2004

by Simon Yates

with David Friedlander, Stephan Wenninger


Executive Summary (This is a document excerpt)

PC vendors have high hopes for the 2004/2005 PC refresh cycle. Dell, HP, and IBM dominate the enterprise desktop and notebook markets, but fierce competition for market share is driving down prices on powerful new PCs. In 2003, aggressive pricing strategies from Dell, HP, and IBM pushed smaller competitors like Toshiba out of contention for enterprise deals. This pricing environment creates a significant opportunity for enterprises willing to bundle desktop, workstation, and notebook orders into a single bid with one vendor. By 2006, Intel's position in the processor market will be challenged by AMD's lower cost Athlon, which will be available on more mainstream systems. In 2007, alternatives to the Wintel platform — such as blade PCs and Linux desktops — will finally have a chance to gain some traction.

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TABLE OF CONTENTS

NOTES & RESOURCES

itemThe PC Market Share Wars Continue

itemDell, HP, And IBM Battle It Out For Enterprise Deals

itemShort-Term Trends In The Enterprise PC Market

itemThe Arrival Of Longhorn Will Create A Fork In The Road

RECOMMENDATIONS

itemWhat IT Managers Building RFPs Should Do

Forrester interviewed vendor companies, including: Acer, Dell, Fujitsu, Hewlett-Packard, IBM, Intel, Microsoft, Motion Computing, Toshiba, and ViewSonic.

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Analyst: Simon Yates
Technology: Client Computing Hardware, Enterprise Mobile Devices, Enterprise Mobility, IT Infrastructure & Operations, Sourcing & Procurement, Sourcing Strategy & Execution
Geography: Asia Pacific, Europe, North America

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