We've all watched as laptop PCs sold like hotcakes over the last few years and gradually take market share from the desktop PC. Customers are finding out that the computing power they need is plentifully supplied by an all-in-one portable laptop and the cables, desk space and noise of a desktop PC simply isn't needed any longer.

For the first time, laptop PC sales outranked desktop PC sales during last quarter. Brands like Hewlett-Packard Corp. (NYSE: HPQ), Dell, Inc. (NASDAQ: DELL), Apple, Inc. (NASDAQ: AAPL) and Taiwan's Acer sold an astounding 38.6 million portable PCs, compared with 38.5 million desktop units, according to research firm iSuppli.

HP continued dominating laptop PCs, with 18.8% of sales during the last quarter. Dell was quite a bit behind the leader with13.9% of sales. Acer took in 12.2% of sales. Although the desktop PC is far from dead, the consumer market is slowly abandoning them for cheap and powerful laptops as time goes by.

When is the last time you saw a perfectly-equipped laptop PC for under $600? Look in the ads from any Sunday newspaper -- they are there. And, customers are buying them like crazy.

It's amazing how two decades after it became popular for home and business use, the personal computer continues to rack up double-digit sales growth every year. Some would say that the internet has been responsible for much of that growth, along with PC games and the like. But many of us are doing the same things with PCs these days that we were seven or eight years ago. So, why are PC sales still going strong?

One reason is that emerging markets are embracing PC technology which is creating ultra-cheap commodity-type pricing. Additionally, laptop PCs sales are growing so fast that it seems that everyone is trading in those home and business desktop computers for the portable laptop with built-in high-speed wireless internet capability. In fact, laptop PCs were reported to grow by over 40% in the second quarter of this year from the 2006 period.

That's simply amazing for a technology that is so old. But age doesn't matter: five-pound computers are all the rage and desktop PCs, confined to a study or bedroom, are being replaced by go-anywhere, powerful laptop systems. Dell, Inc. (NASDAQ: DELL) knows this all too well, as its failure to have consumer-friendly laptops in the retail channel in the last 18 months has largely been responsible for it falling further behind Hewlett-Packard Corp. (NYSE: HPQ) as the world's largest PC maker. 2007 growth figures for the PC market are expected at 12.6% from 2006. Who says the PC is dead? Consumers and businesses vehemently disagree.

Dell has recently suffered laggard sales, a new odd-choice CFO, and accounting scandals. Global competitor Hewlett-Packard has had its own share of problems this year with the pretexting scandal that is still underway.

2007 is seen by many as the year in which laptop PC shipments will overtake desktop PC shipments in total sales worldwide. With laptop systems becoming more than enough for most home and business users, and having the ultimate in portability, this is no surprise and it was just a matter of time before this happened. There will always be a need for high-power desktop workstations -- just not for the normal consumer and business user.

With that said, the model Dell still clings to -- custom-building PCs once ordered -- will have its test next year as more and more laptops sell. HP and others seem to have figured out how to compete with Dell on a cost basis that matches the savings Dell sees by turning inventory fast and by selling direct. How this is, I don't know.

But this I do know : the resurgence in retail PC sales (and laptop sales) will not favor Dell a bit since it only sells direct. Combine that with its hard-to-comprehend custom laptop build process for new laptop PC orders against the competition having models in store shelves today, makes me wonder if Dell will be changing its manufacturing business model soon. Yes, it is one that has worked for the better part of two decades. Times change, though.