Analyst Enderle: ‘Within six months, we will see a new Gateway’

“Within six months, we will see a new Gateway. It should be profitable, it is already focused, the merger will be behind the firm, and it is already running hard. Most companies in this segment are not equipped to deal with change at this rate. Gateway’s changes should better position it to take advantage of the market recovery. Nothing is sure, but so far this is textbook implementation, and I’m a big fan of doing things that are known to be successful as opposed to reinventing the wheel,” analyst Rob Enderle of The Enderle Group writes.

Of the closing of all Gateway retil stores, Enderle writes, “Gateway opened its stores in order to build a retail presence. Apple, which has had a similar problem as a result of its decline and also has built a large number of stores, has been experiencing a substantial amount of channel conflict. The conflict stems from some retailers believing that Apple is providing its stores with advantages that retailers can’t access. Whether true or not, that perception can and does cause retailers to discontinue the lines in conflict.”

Full article here.

Meanwhile, Forbes reports, “Prudential Equity Group said Gateway may be making a misstep with an announcement to close its remaining 188 company-operated retail stores on April 9. Prudential said that by closing its stores, ‘Gateway not only loses any differentiation relative to its branded integrator strategy, but also loses the ability to up sell and cross sell to the customer.'”

Full article here.

45 Comments

  1. wouldn’t have been a normal week without Enderle writing something stupid… how many times has anyone said “I wish I had a gateway instead of this dull” if you are buying a cheap pc you care about price not who made the thing thus you will buy a gateway if its so cheap that they make no money off it…. not a good way to run a business.

  2. Ok Enderle, you’re on. Come back in 6 months and give us a full update on how they’re doing and we’ll see if you’re right.

    Funny thing is, when he’s proven wrong in 6 months and Gateway is not a “profitable company”, we won’t hear a peep out of him about it…

  3. Replace “Gateway” with “Apple” and Enderle and Thurrott would be giving themselves self-congratulations for their prophetic pronouncements. But as poor Gateway bites the dust Enderle, the near mythological seer, graces us with a future of hope and promise. Speaking of promise, when will Longhorn be available, guys? On the next generation Gateway, perhaps?

  4. All this PC rubbish. PC fanatics are the same type of dorks…who look at a Chevy Monte Carlo – NASCAR, racing car …and say “awww coooool” look at that set of wheels ! Mac users are the type to say “That’s a pile of poop” …and then remark favorably at a Ferrari or Lotus. Simply put – some of these analysts cater to a low expectation crowd. The Wall-Mart gang. You’ve seen ’em. No teeth, forty kids in the back of the pick up truck eatin ice-cream. They could get a Mac…but don’t…and then when someonr shows them how cool macs are…they get mad and turn to geeks like Enderle to make ’em feel better. They usually say intelligent things like “oh yaa…Bill Gates is the richest man on earth ” !! Huh…I firmly believe if Ballmer came up with a free bag of poop promotion…Enderle would remark …” Apple is losing market share in the poop sector…” And then all those PC dorks would go “Yaaaaaa…”

  5. hey! wasn’t the retail channel the best way to hawk Consumer electronics?

    yea! you’re not gonna buy freakin 30 inch TV over the web… you gotta touch it and sit in front of it… etc

    oh well.. gateway wants to play the shitty pc commodity game..

    oh well, just don’t come out wih a dell dj, and you’ll be fine, gateway..

    gateway?!

    “refer to me as eMachines from now on..”

  6. MDN, in 6 months, can you remind us about this article? October 2nd. And when October 2nd comes and Gateway doesn’t turn around, this guy won’t mention anything…

    And Apple is going out of business soon, isn’t that true?

  7. Gosh, Rob, want an impressive resume that you have! Just oodles and oodles of words. Kinda reminds me of the old phrase “Publish or perish.” Sadly, it isn’t in the quantity of the work that matters, but the quality.

    If in 6 months Gateway is nothing more than a memory you will have re-established your puny human frailty. If Gateway roars back with a vengeance then “Good guess, Rob!” because many of your previous pronouncements were nothing less than wrong, wrong, wrong.

    Stick to reporting the news rather than predicting it, Rob.

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