Steve Fortuna Gateway Quotations

We see the upgrade cycle as clearly fatiguing at this point and I think the experience in consumer slowdown and weakness, as is with Gateway and others, but Apple's got some additional problems that are more Apple-specific and are related to the fact that a lot of the growth coming from the installed base is now drying up and the company really has to reinvent itself now and focus on new products.

While we believe that most of the steps Gateway is taking are necessary and desirable, we do not think that the withdrawal from international markets, especially Europe, is in the company's best long-term interests.

We see Europe as an important market for Gateway with lower PC penetration rates and the potential for higher long-term growth rates in the consumer & small business markets than in the U.S..