Beleaguered Gateway closes all retail stores; Apple poised to open 77th outlet

“Computer manufacturer Gateway announced to close its 188 retail stores in the US. The company plans to pursue its sales through its website and retail channels. The decision to return to its roots was a widely anticipated move by analysts reflecting the firm’s cost cutting strategy. ‘It is not a real surprise,’ said Martin Reynolds, an analyst with market research firm Gartner. ‘Gateway’s problem is their cost structure,'” Wolfgang Gruener reports for Tom’s Hardware Guide.

“Reynolds also sees the closure of the stores which will eliminate about 2,500 jobs as an effect of Gateway’s acquisition of eMachines. It would be more effective for Gateway to expand its presence in retail stores such as Best Buy or Circuit City, an environment eMachines is familiar with, Reynolds said,” Gruener reports. “While Gateway had trouble making the store model work, Apple took a similar approach and appears to be able to boost its sales. According to the company, Apple stores postes an 83 percent increase in customer traffic in 2003, $273 million in revenue and $9 million profit.” Full article here.

Apple Computer, Inc. recently opened its fifth flagship store in San Francisco, bringing their total to 76 retail stores which have hosted more than 30 million visitors since the first Apple retail store opened in May 2001. The Apple Store San Francisco is the company

28 Comments

  1. Hey, what the H-E-L-L, MDN, “beleaguered” is trademarked by Apple, you can’t use that…. to describe a PC box assembler, that’s not right!!!

    I don’t like cows much! Mooo!

  2. Gateway closes it’s stores, Apple opens ’em – yet Gateway continues to sell more and more boxes, but Apple’s numbers decline – people just don’t learn.

    “Does not compute, does not compute, does not compute!”

  3. Well now. Who is going to buy a Gateway computer? The company is dying and whoever buys a computer from them will end up with no support.

    Gee, it’s nice to use the same argument that people had in mid-90’s against Apple and direct that towards Gateway, the king of crappy computer.

  4. After Apple sells tons of $99 pro care cards, they’ll need to hire a bunch more mac geniuses to handle all the traffic. I smell an opportunity for somebody!

  5. Hmm.. Peter, I stand corrected, thanks for the info. My rather flippant and negative nancy attitude towards the State of the Mac, can at times be completely wrong.

    ‘Oh woe is me!’

  6. Gateway just announced that the are moving their entire headquarters from San Diego to Orange County just so their sissy CEO dosen’t have to move. What a waste of resources. This is how the new Gateway/eMachines company begins its life…wasting valuable company money to satisfy the spoiled brat who is now in charge of running it! Time to heat up the BBQ!

  7. How about a word of sympathy for 2500 people who just lost their jobs. Gateway may make undesirable computers, but they were sold in stores by people who depended on the company for a living. I take no joy in the failure of this PC company.

  8. Yes, what Lee said. Each of those 2,500 people are connected to a family. There is no joy in Gateway-ville tonight. I hope that those folks can get new jobs quickly- perhaps they can apply at some of those new Apple stores that are opning up!

  9. Seeing as they may be more in retail than IT, they have a much better chance at getting another job … as long as they don’t insist on selling computers.

  10. No big surprise,, Gateway builds junk. After asking me for advice on buying computers both my cousin and my uncle bought gateways instead. They both have problems with the gateways, and complain to me about them. I had to tell my cousin to stop complaining to me about it because I am not a Gateway support person. I told her that if she had bought the imac I recommended she probally wouldnt have so many problems. She just married a photogragher (who is a big mac guy too) so when they get back from their honeymoon, that gateway will probally be in the trash where it belongs.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.