Beleaguered Gateway to buy eMachines; combo could be 3rd largest Wintel box assembler

“Struggling computer and consumer electronics maker Gateway Inc. announced yesterday that it is acquiring rival computer maker eMachines Inc. for $30 million and 50 million shares of stock in a deal that could make Gateway the No. 3 computer maker in the United States. As part of the deal, eMachines chief executive Wayne R. Inouye will replace Gateway founder Ted Waitt as Gateway’s chief executive,” Mike Musgrove reports for The Washington Post.

“eMachines was founded as a seller of bargain-priced computers in 1998, offering desktops priced around $400. Sales for the tiny company have climbed steadily, and they passed Gateway’s sales during the recent holiday season. During the past quarter, eMachines shipped 498,000 computers and Gateway delivered 497,000, according to IDC,” Musgrove reports. [MDN Note: Apple Computer, Inc. sold 829,000 Macintosh units last quarter.]

Full article here.


  1. Then again, since Gateway, and (I believe) eMachines ONLY have sales in the US, that would be there ‘entire world’, in a sense.

    The it would be: 829K – Apple; 995K – Gateway/eMachines (combined).

  2. Ed – Unfortunately for Gateway, the numbers won’t work that way. Buying eMachines will just eliminate them as competition. Future sales that would have gone to eMachines will now be split up among the remaining box assemblers. Some will go to Gateway, but others who would have bought eMachines will instead buy Dell boxes or some others. Some may even buy Macs.

    Look at the HP – Compaq deal for example. Since HP bought Compaq, their sales have never come close to the combined total sales of the two companies before the purchase.

  3. Gateway and eMachines together. Nice they will free market share to others like Apple. What will be their new name? GatE(s)Machines? or just Billie Bob Machines?

  4. The article points out that Gateway sells online, emachines at retail outlets. It’s a good idea based on that, since in a sense different markets are involved.

    Denigrating the cheap boxes is easy and cute of course. Nice of MDN to post these articles so you guys don’t have to break a sweat.

    BTW if you want a good cheap wintel notebook, the best deals are ACER
    which btw, shipped worldwide (we are talking worldwide today I guess)140,000 more laptops than Apple managed to sell computers of all kinds. Must be easier to move this crap than it looks. I wonder why Steve can’t?

  5. “The article points out that Gateway sells online, emachines at retail outlets.”

    Joe, how short your memory is! Remember that Gateway had many retail outlets of its own that it had to close because they were bleeding money so badly.

    Yes, ACER can move a lot of shit boxes. Steve (I assume you’re referring to Steve Jobs) can’t because Apple doesn’t sell shit boxes. Oh, and Apple actually makes a profit. That’s something that none of the three box assemblers you mention can say they’ve done recently. D’oh!

  6. “good cheap wintel”

    That’s an oximoron. Every owner of an Wintel notebook I personally know of has had some major flaw develop within months of ownership. So the heck what of if Acer sold “140,000 more laptops than Apple managed to sell computers of all kinds” if they aren’t making money off of it. Apple and Dell are the ONLY computer companies making a profit off of computers.

    Yeah yeah, Joe, you’ve never had any problems with your PC blah blah blah. Your personal experience with your PC does not change the FACT that PCs are less reliable than Macs. Take it like a bitter pill and go on with your life.

  7. “Your personal experience with your PC…” – exnihilo

    Shouldn’ that read “Your supposed personal experience with your PC…”

    I mean, really, how much of what Joe professes can actually be taken as more than mild comic relief?

  8. I like Joe Mc’s tactics of hit & run. He hits with a posting and then runs instead of responding…

    Yes, I’ve had experience with Acer computers. You are 50% right, they are cheap. They are not good. Actually I guess you’d be 66% right because they are Wintel.

    Acer is such a piece of crap that they should lower the production cost and cost to consumer by making them out of cardboard. Then, they’d be of less impact on the environment when they end up in the landfill.

    Joe, you get what you pay for. Mama ever tell you that? Well, it’s true. You buy an Acer and you get CRAP. You buy Apple brand and you’ll be happy.

  9. “Must be easier to move this crap than it looks. I wonder why Steve can’t?”

    Sometimes, it is really hard for Win users to understand. Why is that? It is really simple and won’t take an IQ more than 90 to understand: it’s not a matter of ability, it’s a matter of willingness.

    Apple cares about quality. It will not sell a $300 piece of junk. Not all companies should cater to the lowest common denominator.

  10. Joe Mc: Acer! Are you sure? If you said Fujitsu-Siemens, I could vaguely understand – well assembled, great customer service, aggressive pricing. But Acer??

    Sometimes I think you just post this crap just to pull our chain, and at that level it’s quite funny.

    Of course, if you’re serious, there are plenty of good mental health professionals available on a nationwide basis.

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