Prior to the big show, I spoke with Todd Bradley (pictured), the general manager of HP's PC division to discuss some of the current issues including: the need for HP to increase its direct sales channel, the favourable components pricing that led to a better than expected financial quarter, as well as HP's SMB strategy and the need or lack thereof of a separate brand to server the small and medium market. So far, HP has done the right thing: a complete outsourcing of manufacturing, strong retail presence with both HP and Compaq brands, keep improving the upscale Voodoo PCs, aggressive pricing and marketing splash.

But how long can this "Indian Summer" last? My guesstimate is, as long as HP delivers and Dell remains in its quagmire: restructuring its channel strategy by going more indirect/retail, get over the financial issues (stock re-pricing) and solving product quality problems (the painting!). I don't really see Acer/Gateway/Packard Bell or Lenovo being serious competitors anytime soon.