Dell, Inc. (NASDAQ: DELL) won't see growth or gain market share in the next few quarters, according the brokerage house Merrill Lynch. So much so that the broker cut its rating on the PC maker to Neutral, citing the company's lack of catalyst to change anything about its bleak future as the business and consumer sectors continue to pull back their money.

But Dell wasn't the only one whacked. Merrill indicated that the market for PCs would be deteriorating through 2010, with a 2% free fall in 2009, contrasting against its earlier call of a 12% spike next year. In other words, it has no idea how the PC market is going to shake out. Might as well flip a coin.

Declining European and U.S. sales forecasts in the PC market are now showing up in the Asia Pacific and emerging markets as well. Although Merrill did say that expectations for growth in the newer netbook category would help offset softness in overall sales, I'm skeptical.

These newer netbooks are under-powered and are hard to type on (try one), even though the valiant attempt by PC makers to create a new category -- something that will sell -- is admirable. There will be a niche market for these devices (many of which cost as much as an on-sale full-size notebook), but that's it. If there's a bright future for these things plus any kind of profit margin that's respectable, I don't see it. That is, unless buyers like under-powered old hardware running old software with less features. But hey, it's small!