Desktops have traditionally been more popular than laptops because they cost less. But in May 2005, laptop sales outpaced desktop sales for the first time. The growth of wireless Internet is the main cause, says John Edwardson, CEO of giant computer reseller CDW. With Wi-Fi, a laptop owner can work almost anywhere, he says.

<A HREF="http://www.newsfactor.com/story.xhtml?story_id=50475">The PC industry is shifting</A> faster than some companies can adapt, Gateway CEO Ed Coleman says. Laptops are replacing desktops as the PC of choice. Consumers are choosing computers based on style as well as speed. Business sales growth in developed countries is slowing, while developing nations such as India, China and Brazil are taking off. PC makers now must chase both markets if they want to thrive, HP CEO Mark Hurd says.

HP is making a gradual comeback from years of market share losses to Dell.