Acer Inc. acquired Gateway in 2007.

Gateway, Inc.

Former American computer hardware company
This article is about the computer company. For other uses of Gateway, see Gateway (disambiguation).
Products Desktops, laptops, servers, monitors Revenue Increase US$3.980 billion (2006)
Number of employees
2,000 Parent Independent (1987–2007)
Acer Inc. (2007–present) Subsidiaries eMachines (now defunct) Website gatewayusa.com

Gateway, Inc., previously Gateway 2000, is an American computer hardware company. The company developed, manufactured, supported, and marketed a wide range of personal computers, computer monitors, servers, and computer accessories[citation needed]. It was acquired by hardware and electronics corporation Acer, in October 2007.

In 2020, Walmart had announced a deal with Gateway in partnership with THX to revive the Gateway brand launching various devices from tablets, convertibles, and budget laptops.

History

Gateway 2000 logo used from 1986 to 1998

Gateway 2000 logo used from 1986 to 1998
Gateway logo logo used from 2002 to 2004

Gateway logo logo used from 2002 to 2004

Gateway was founded on September 5, 1985, on a farm outside Sioux City, Iowa, by Ted Waitt, Norm Waitt (Ted’s brother), and Mike Hammond.

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The origins of the company’s name and cow motif can be traced to the meatpacking industry in the Sioux City area in the late 19th century. Before the Big Sioux and Missouri rivers were spanned by bridges, it was common to transport cattle into Sioux City by ferry, and every so often, a cow would slip off the ferry deck. The farmers were often left with no choice but to give up the cow for lost and get the rest across the fast-moving river. Ted Waitt’s ancestor was an enterprising individual who would round up these cattle before they could drown and sold them to the meatpacking plants once rescued. Also, North Sioux City, SD is sometimes referred to as the “Gateway to South Dakota” due to its location.

Gateway 2000 was also an innovator in low-end computers with the first sub-$1,000 name-brand PC, the all-in-one Astro.

Gateway built brand recognition in part by shipping computers in spotted boxes patterned after Holstein cow markings. In 1989, Gateway moved its corporate offices and production facilities to North Sioux City, South Dakota.

In 1997, Gateway acquired Advanced Logic Research, a maker of high-end personal computers and servers. Gateway dropped the “2000” from its name on October 31, 1998, recognizing that the year 2000 would soon cease to be futuristic.

In line with the Holstein cow mascot, Gateway opened a chain of “farm-styled” retail stores called Gateway Country Stores, mostly in suburban and rural areas across the United States. The first of these stores opened in 1996. At the chain’s peak in 2001, there were over 300 locations across the country, and the stores are said to have inspired the launch of the Apple Store that same year. Gateway Country stores were primarily showrooms for the company’s computers, allowing customers to meet with a salesperson and customize computers that would be shipped to their homes, and only offered a small selection of its most popular models to be purchased in the store. While the stores were more profitable than the company’s other sales venues, dozens were closed as the company struggled throughout the early 2000s. The last remaining stores closed in 2004.

AOL acquired Gateway.net, the online component of Gateway, Inc. in October 1999 for US$800 million.

To grow beyond its model of selling high-end PCs by phone, and to attract top management and engineers, Gateway relocated its base of operations to La Jolla, California, in May 1998. In an effort to cut operating costs, Gateway made another move, this time to Poway, California, in October 2001. After acquiring eMachines in 2004, Gateway again relocated its corporate headquarters, to Irvine, California.

In 2000, Gateway announced a partnership with OfficeMax to sell its computers in store through the Gateway Country Branding. In 2001, Office Max Announced that it was replacing Gateway with the HP Brand.

In 2003, the Securities and Exchange Commission filed fraud charges against three former Gateway executives: CEO Jeff Weitzen, former chief financial officer John Todd, and former controller Robert Manza. The lawsuit alleged that the executives engaged in securities violations and misled investors about the health of the company. Weitzen was cleared of securities fraud in 2006; however, Todd and Manza were found liable for inflating revenue in a jury trial which concluded in March 2007.

Gateway moved build-to-order desktop, laptop, and server manufacturing back to the United States with the opening of its Gateway Configuration Center in Nashville, in September 2006. It employed 385 people in that location. By April 2007, Gateway notebook computers were produced in China and its desktops had “made in Mexico” stickers.[citation needed]

On October 16, 2007, Acer completed its acquisition of Gateway.

Gateway laptop at a Walmart in 2022

In September 2020, Acer granted Gateway branding and licensing rights to Bmorn Technology, a Shenzhen based technology company to manufacture and sell Gateway branded laptops and tablets through Walmart. The new line of laptops is a simple rebadging of Acer’s existing EVOO branded laptops. The laptops are tuned in partnership with THX.

Current and previous products

Previous hardware

In September 2002, Gateway entered the consumer electronics market with aggressively priced plasma TVs. At the time, Gateway’s US$2,999 price for a 42″ plasma TV undercut name-brand competitors by thousands of dollars per unit. In 2003, the company expanded the range of plasma TVs and added digital cameras, DLP projectors, wireless Internet routers, and MP3 players. By early 2004, in terms of volume, Gateway had moved into a leadership position in the plasma TV category in the United States. However, the pressure to achieve profits after the acquisition of eMachines led then-CEO Wayne Inouye to phase Gateway-branded consumer electronics out of their product line that same year.

eMachines

Main article: eMachines

eMachines was founded in 1998, brand of low-end personal computers. It was acquired by Gateway, Inc. in 2004. In 2013, the eMachines brand was discontinued by Acer Inc., which acquired Gateway in 2007.

See also

References

External links

General
National libraries


Source: Gateway, Inc.
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