“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.
Cheap n’ Nasty buys Cheaper n’ Nastier!
Still, that’s one less vendor of lowest common denominator boxes out of the loop – only another 1000 to go.
It’s a marriage made in heaven. The mediocre joins together with the even more medicore. Now if they can only add Packard Bell to the mix they’ll have it all.
Yes, they did sell 829,000 worldwide, but only 378,000 in the US.
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).
you could call the new company “eCrap”…
AHAHAHAHAHHAHAHHAHAHAHAHAHAHAHHAHAH
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.
donnie, wouldn’t that be “eCrapway”?
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?
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 http://global.acer.com/about/news.asp?id=6425
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?
“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!
“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.
“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?
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.
“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.
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.
“Gateways suck!” – direct quote from a friend of mine who works in IT for New York State offices. Although, due to that fact, he also gets tons of overtime fixing Gateways, and other cheap Wintel machines that the state insists using to “save money”.
And Wal-Mart sells ACER’s – so of course they are going to have high numbers.
Ummmm….. the “cowhide” company picks up the “cow chips” company. A match made in Bovine heaven. Talk about Mad Cow disease!!
MCCFR, that is exactly what Old Man McConnell does. He’s actually quite a funny guy if you take it as it’s obviously meant. The really funny thing is that so many posters here get all steamed up at him rather than just engaging him in debate, which is what he wants.
I mean, Acer. LOL.
BTW, Joe, the OM McConnell bit isn’t meant as derogatory, but if you’re going to play the role of the Scooby-Doo baddie, it sort of fits.
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eMachines products will destroy sales of Gateway’s higher priced but comparably similar desktops and notebooks. So, just adding the two together will not equal their total sales. What will happen is that the current Gateway line will be destroyed by the lower cost eMachines line. By buying emachines, Gateway is conceding that there is no reason to pay a premium. Unlike the various Apple lines that are easily differentiated.
I question Gateways CEO’s wisdom, if he has any. eMachine just came out of chapter 11 not too long ago. Two sick patients do not make a strong team. With a combined market share of 7%, the only way for them to go is down! With Dell and HP in the middle and Apple at the high end, Gateways is going to go down like Yugo!
Joe McConnel had a Dell
E-I-E-I-O
And that Dell’s battery did explode
E-I-E-I-O
With a Boom! Boom! here and a Boom! Boom! there
Here a Boom! there a Boom!
Everywhere a Boom! Boom!
Joe McConnel had a Dell
E-I-E-I-O
no more commercials with Ted and the cow? sad.
Cat person,
Nice one!
Hi dave, I appreciate the repartee as usual. Hope things are nice on that side of the pond. I don’t get the Scooby do analogy but I will get up early tomorrow, switch on the toon channel, and research it.
Abomb, I had forgotten about Gateway’s stores. I guess they figure these other guys can do it better. Business is a gamble, and although it is not a zero sum game, a lot of people do end up looking dumb. They very well might, and while going down the tubes, they will still sell 5 or 10 million boxes that are not Macs. That must be frustrating for Steve.
Yup, acer makes a nice product. I know of a few of them and they have a lot of bang for buck feature wise and are reliable. That is all I meant, and all I said. Some of you may have more experience with them, but it is hard to put credence (a root of CREDIBILITY, RV) into the wintel=crap anecdotes that run this page. They are probably not granite forever reliable like a powerbook, but I know that Steve sells a lot of applecare contracts for SOME reason.
Jimbo, we have had this discussion before. If I am not replying to the inevitable flak arising from my posts immediately, it is because I am not around. Sorry about that.
About pulling chains: were I to wish to, this WOULD be the place. Some of you guys have 3 or 4 hanging down.
Joe, I do not think Steve is frustrated a bit. Apple is a very profitable company, has customers who appreciate quality and know the value of the platform and will never switch to Wintel even if it was going to be for free. Why? (since Wintel users never understand that…) because $3000 are just that: $3000. Having a computer and an OS which is a pleasure to work and play with is PRICELESS.
Wintel user go after the lowest sticker price. Apple does not compete for that kind of customers and never will. This is another issue pundits do not understand: “If Apple would do this and that Steve will get all the John Doe currently on Wintel”. Steve and Apple does not care about those – again Apple is very profitable without – as much as a Maitre d’Hotel of a 5star restaurant does not care about lowering quality so to lower prices to get customers who can’t tell the difference between pee and champaign: to them both are yellowish, have bubbles and taste funny.