Gateway, Inc.
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Image:Gateway1.jpg
Gateway, Inc. (Template:Nyse) is an Irvine, California-based computer computer company. Gateway is currently the third largest PC company in America and among the top ten worldwide.
History
Image:Gateway logo.png Image:Gw2klogo2.png Gateway was founded in 1985 by Ted Waitt. Originally called Gateway 2000, it was one of the first widely successful direct order companies, utilizing a sales model similar to that of Dell, and playing up its South Dakota roots with low-tech advertisements and shipping computers in spotted boxes patterned after cow markings (specifically, those of Holstein cows). In line with the Holstein cow mascot, Gateway opened a chain of retail stores called Gateway Country Stores in mostly suburban areas across the United States. It dropped the "2000" from its name in 1998.
Gateway struggled after the dot-com bust and tried several strategies to return to profitability, including withdrawal from international markets, reduction in the number of Country Stores, and most significantly, entering the consumer electronics business. None of these efforts were particularly successful, and Gateway continued to lose market share and suffered major losses.
On January 30, 2004, Gateway purchased low-cost PC maker eMachines, in hopes that its outsourced manufacturing process would help Gateway cut costs and that eMachines' profitable retail business would help its bottom line. Gateway announced its intention to keep the eMachines brand. By April 1, 2004, Gateway had announced that it would shut down its 188 remaining stores. The last day of operations for the stores was April 9, 2004.
Despite its more low tech image, Gateway has long outsourced some of its operations (such as customer support) Gateway produced its last U.S. built computer at its North Sioux City plant in 2004.
Image:Gatewaycamera.JPG Gateway also used to make various electronics, such as the popular plasma screen TVs, digital cameras, LCD projectors, wireless internet routers, MP3 players, etc. Gateway has slowly phased all of these products out.
Gateway bought Amiga computer assets in 1997. In 2000, Gateway sold the Amiga brand.
In 2004, Gateway purchased eMachines for $30 million in cash and 50 million shares of stock, valuing the deal at approximately $234.5 million. The deal called for Wayne Inouye, eMachines' CEO, to become CEO of Gateway, displacing founder Ted Waitt.
Gateway competes with the likes of Dell, Inc., HP/Compaq, Lenovo, Sony, Toshiba and Acer