Monday, September 24, 2018
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What Ever Happened To Gateway?

Starting in 1985, Gateway 2000 was the original moniker of Gateway computers. Shipped in Holstein cow markings boxes to accent the rural roots of the Iowa based company, it was supposed to be the greatest computer company of the upcoming century. And Gateway was indeed that…a record breaking company with an instantly recognizable identity. Eventually, the 2000 was dropped from the name, and it became a commonly recognized computer company.

Operating as a phone order company only was beginning to seem obsolete, so the opening of retail stores in 1989 to accentuate the growth of Gateway was the next reasonable step. Success followed this action and in 1998 Gateway was large enough to move corporate offices from Iowa to California and join the technology base and wisdom of the Silicon Valley. However, the dot-com boom and subsequent bust did not treat Gateway very well and they suffered huge losses. Outsourcing to China and Mexico kept them afloat and although they struggled they did acquire eMachines in 2004 to start making a name in the laptop industry. Gateway had already set precedents in the desktop offerings by being the first to offer color monitors as standard equipment and 3 year warranties on their products.

Gateway still produces laptop and desktop computers, but they dropped their offshoot of plasma televisions and other electronics. This may make them seem archaic because they only offer computers, but since 2007 when Acer acquired Gateway, they have still managed to hold a larger market share than Apple. Gateway currently produces laptops that range in price from $400 – $1100 and desktops that range from $700 to $1200. They have stayed up to date with technology and offer notebooks, all in one desktop, or the traditional tower packages. Customization is available and they are also in the forefront with touch screen technology. So, Gateway is still around and offering quality products.

Gateway no longer offers direct sales on their website; it has been more profitable for them to sell indirectly through big box electronic stores and online through retailers. They have kept production costs lower than many competitors, yet, still produce a very good product. Gateway has taken their money and invested it within the company, concentrating on keeping the market share above Apple and not stressing about being beat out by Dell and HP. Advertising is expensive, so they remain, they are just quieter. Brand loyalty is amazing.

The author of this article, Louis Rossmann is a straight shooting tech guy who specializes in repair and LCD replacement. Contact him through his Rossmann Supply website.

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