Gateway Buying eMachines

from the convergence-of-mediocrity dept

Struggling to remain relevant in the computer business at the same time that they're pushing into the highly competitive consumer electronics business, Gateway has noticed that the reinvented eMachines is actually making some money. Thus, they've decided to buy eMachines in an attempt to boost their computer sales business. eMachines, though they've gone through a few revisions, has made a name for itself selling incredibly cheap machines. Lately, they've figured out how to do this at exceptionally low cost to themselves, as well - helping them to bring in a profit. So, the question is whether or not pulling that operation into Gateway will add significant overhead to a lean operation and wipe out the profits. Of course, the side benefit could be that Gateway can use eMachine's strong retail ties to get some of their consumer electronics into the retail channel.
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  1. identicon
    Oliver Wendell Jones, 30 Jan 2004 @ 10:57am

    It must be Friday afternoon...

    I read that and thought to myself "Why would Gateway need to buy computers from e-Machines, don't they have enough PCs already?"

    It was only about 2 seconds later that I realized, "Oh, they're buying e-Machines the company, not e-Machines the computers"...

    Must be time for another cup of coffee.

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