Despite giant rivals, many tiny PC makers are still doing well; using a personal approach, they thrive by serving equally small customers; rapid change is their friend

Article Abstract:

Small PC makers control approximately 25% of the computer market by offering personalized and customized service to their faithful customers. Despite predictions that these small businesses would fade away as the computer industry matured, analysts maintain that there are approximately 100,000 small PC operations in existence. The success of these small businesses is largely attributed to their ability to manage limited gross margins. Another way in which these small businesses survive the massive advertising and price reductions of their larger competitors is by offering their customers less expensive machines made with older and less powerful parts. The growing majority of second-time buyers in the PC market also favor the expertise often provided by small manufacturers. Industry leaders such as Intel and Microsoft recognize the market presence of these small businesses. Although both Intel and Microsoft sell their products through wholesalers, they have each developed marketing and training programs for the smaller businesses.

Microcomputers, Forecasts and trends, Small business, Market share, Home Computer Market, Market Trend/Market Analysis

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A PC maker's low-tech formula: start with the box

Article Abstract:

Monorail founder Doug Johns contends that logistics rather than superior technology has enabled his lucrative niche company to compete against big name contenders such as Compaq and IBM. Johns has marketed his computers' design and direct distribution and he has outsourced customer support and manufacturing. Johns created his hybrid PC to fit Federal Express' (FedEx) optimal shipping specifications. He introduced his $999 machine in late 1996 and has captured significant market share in the under $1,000 PC market which has increased to approximately 33% the PC market from less than 5% last year. Johns has enlisted FedEx as Monorail's distributor for overnight deliveries. Monorail's machine, which is 80% smaller than traditional PCs and 50% heavier than notebooks, has a sealed case and must be returned to Monorail for modifications such as added memory chips.

Management, Company marketing practices, Distribution channels, Company analysis, Company executive, Computer executives, Market Entry, Direct market channel, Monorail Inc

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Gateway 2nd-period net trailed forecast

Article Abstract:

Gateway's 2nd qtr 1998 profit fell short of analysts's expectations, revealing additional pressure from popular inexpensive models. The profit of $60.7 million, or 38 cents a diluted share represented a 7.4% increase over the 2nd qtr 1997's $56.5 million, or 36 cents a diluted share. By comparison, Wall Street had expected Gateway to post a per-share profit of 44 cents a share. The computer manufacturer touted a Jun 30, 1998, order backlog boost of 18% from the end of Mar 1998. Gateway's average selling price, however, plunged 12% after previous declines rates of less than 10%. Gateway reported $1.62 billion in revenue for a 17% improvement over $1.39 billion in the 2nd qtr 1997. Pres Jeff Weitzen, citing profitability reasons, promised that Gateway will not enter the sub-$1,000 PC segment.

Finance, Company sales/revenue, Company sales and earnings, Gateway Inc., GATE, Company earnings/profit

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