Gateway LCD TVs

Gateway, Inc. is an American computer hardware company based in Irvine, California which develops, manufactures, supports and markets a wide range of personal computers, computer monitors, servers, and computer accessories. more...

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In the early and mid-2000s, the company struggled; after years as a fixture on the Fortune 500 list of largest companies worldwide, the company was not listed in 2006, having dropped to number 508. Gateway became widely known in 1991 when they started shipping their computer hardware in cow-spotted boxes.

History

Gateway was founded on September 5, 1985, on a farm outside Sioux City, Iowa, by Ted Waitt and Mike Hammond. Originally called Gateway 2000, it was one of the first widely successful direct sales companies, utilizing a sales model copied by Dell, and playing up its Iowa roots with low-tech advertisements proclaiming "Computers from Iowa?". Shipping computers in spotted boxes patterned after cow markings (specifically, those of Holstein cows) became a gateway standard. In 1989 Gateway moved its corporate offices and production facilities to North Sioux City, South Dakota. In line with the Holstein cow mascot, Gateway opened a chain of retail stores called Gateway Country Stores, mostly in suburban areas across the United States. It dropped the "2000" from its name on December 31, 1998.

Completing another move in 1998, Gateway relocated to La Jolla, California.

Gateway bought Amiga computer assets in 1997 and in 2000 they sold the Amiga brand.

Gateway struggled after the dot-com bust and tried several strategies to return to profitability, including withdrawal from international markets, reduction in the number of retail stores and most significantly, entering the consumer electronics business. None of these efforts were particularly successful, and Gateway continued to lose market share and suffered major losses. By April 1, 2004, Gateway had announced that it would shut down its 188 remaining stores. The last day of operations for most of the stores was April 9, 2004.

On March 11, 2004, Gateway purchased low-cost PC maker eMachines, for $30 million in cash and 50 million shares of stock, valuing the deal at approximately $262 million with announced intentions to keep the eMachines brand. Gateway had hopes that eMachines' outsourced manufacturing process would help cut costs and that their profitable retail business would help Gateway's bottom line. Through the deal, founder Ted Waitt turned over day-to-day responsibilities and the CEO role to eMachines' CEO, Wayne Inouye, and remained as chairman through May 2005. Inouye announced his resignation as CEO on February 9, 2006; Chairman Richard Snyder served as interim CEO until September 7, 2006 when J. Edward Coleman was brought in as the new CEO. Gateway still sells emachine brand computers at low prices through certain venders like Circuit City and Best Buy.

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