Gateway to stop custom building and outsource all PC hardware

[grant2]

So basically Gateway is saying they have $130m/year inefficiencies in assembling PCs.

Dumbasses, they should spend $160m "restructuring" cost to fix their own system not give someone else their core business.

 

[PanzerIV]

Originally posted by: palad
........ firing more people and broadening their product line.

Yes, todays corporate mentality. When times get tough fire everybody! We have no loyalty to our biggest liabilities - read employees. Who needs the peons? It's all about raising our executive's salaries and sweet, outlandish bonus plans higher than any of our peons will even make in a lifetime.

Yes, the times they are a changin'...

 

[palad]

Originally posted by: dullard
In the whole scheme of things if Gateway outsorced everything there wouldn't really be any net job cuts. Sure Gateway will cut workers, but the company now doing all this extra work will be hiring employees. That shouldn't be a concern to you unless you happen to be a Gateway employee (and even then if you are willing to move it shouldn't concern you much).

Actually, the big concern is that in the US there will be net cuts. Gateway is outsourcing almost everything to India now, which means that the laid-off US employees would have to move halfway around the world to find the market those jobes are being added to.

 

[Pandaren]

It is very telling that Gateway's best notebook offering, the X200, is actually a rebadged Samsung X05.

 

[OverVolt]

Seems like things are going bad for the economy <- makes meh wonder whats going to happen.

 

[snowguy]

I feel bad for Gateway's employees...never supported the company with my wallett though.

One thing I don't understand about american capitalism..oh I know that corporations have to at least try to maximize their profits etc to stay in business (corporate exec salaries aside), but in the grand scheme of things...a viable economy and a healthy and prosperous middle class would seem to go hand in hand.

So...why continually undermine the purchasing ability of the working and middle class by moving decent jobs out of the country and reducing the purchasing power of your customer base?

Also this BS about keeping the minimum wage to a below poverty level is shooting the business/employer community in its own foot. Makes no sense to me to force half of your potential purchasers to live at a poverty level and then expect to have a healthy and willing customer base with the ability to make mostly non-essential purchases.

The whole thing is goofy.

 

[wetcat007]

Originally posted by: palad

Originally posted by: dullard
In the whole scheme of things if Gateway outsorced everything there wouldn't really be any net job cuts. Sure Gateway will cut workers, but the company now doing all this extra work will be hiring employees. That shouldn't be a concern to you unless you happen to be a Gateway employee (and even then if you are willing to move it shouldn't concern you much).

Actually, the big concern is that in the US there will be net cuts. Gateway is outsourcing almost everything to India now, which means that the laid-off US employees would have to move halfway around the world to find the market those jobes are being added to.

So not just the tech support is in India now? Everything is? Wow...

 

[randumb]

Wow. This is an old thread back from the dead.

This means lots of lost jobs for US Gateway employees.

 

[ElFenix]

i was wondering when something like this was going to happen with an OEM. outsource all manufacturing, that is.

 

[peterskm]

Originally posted by: Idoxash
A lot of notebooks are built by other companys. From what I read even dells are done that way. So I IBM and I'm sure most other companys. IN either way the only way to HAVE a GREAT computer is build that mofo ya self, hehe. I guess all us builders help bring down them companys or have they ever figure now that everyone has computers what is there to sell? I'm sure if they took a look at all the ppl they lay off and other jobs they see these days a lot of ppl are having money probs and would not upgrd for years to come. Or did they thought when they lay off ppl they can sell computers? LOL right, eh.

--Idoxash

I bought a Compaq notebook from HP and it was built in Taiwan.

 

[Zebo]

Gateway used to build great machines in the early 90's ... I only used to order the E series from them... Best support and high quality builds and boxes.. I recently ordered about 12 E series and got these crappy small black box and LCD's with the biggest bezels I've ever seen. Hav'nt used the support yet...

 

[Ryan]

I actually haven't EVER had a problem with their support. My parents bought one of the last AMD Athlon 1.4ghz systems two years ago, and they've never had a problem other than the hard drive dying (It was an IBM Deathstar). It's been rock solid. I've spent a few hours on tech support, and I've never had a problem. I was always greeted nicely, and dealt with knowledgable staff. In fact, today I'm going to have to call about my parents speakers - the wire that connects the left channel speaker has to be jiggled to work - that's about it. Of course, it's not really their fault since the speakers are made by Boston Acoustics, but they do need to be replaced.

Hmm, I wonder if I'm going to talk to someone in India today.......

 

[techwanabe]

Originally posted by: Zebo
Gateway used to build great machines in the early 90's ... I only used to order the E series from them... Best support and high quality builds and boxes.. I recently ordered about 12 E series and got these crappy small black box and LCD's with the biggest bezels I've ever seen. Hav'nt used the support yet...

We recently received 10 of the E4100 series computers in slimline mini cases. They don't seem too bad except not much for expansion. Hopefully they will hold up - we got the 3 year warrantee on them. They, apparently were assembled and shipped in the eastern US, probably Virginia, but now that plant is closing.

The laptops employee's ordered (notbooks) seemed like nice computers - but those were shipped from overseas, which means outsourced.

 

[FrozenFrog]

This thread is pretty funny because everyone bitches about an American company laying off employees and outsourcing to India, but no one really catches on as to WHY this had to happen. Guess who had already implemented this into their "mega extreme kickass corporate business model" early on - gee could it be that Dell interns aren't really a bunch of white, Cali babies riding around in a bus? Dell shafted the American worker long ago when it comes to in-house tech support and now even sales. Why pay a domestic worker real commissions when you can pad the corporate wallet by paying someone in Panama or India $1/day w/no benefits to be an order taker. Just give 'em a price sheet and tell this is the bottom margin, do whatever it takes to kill the competitors' offering and get the sale.

They have set the stage to either follow along with their jacked up profit raking machine, or close up shop.

BTW, anyone who actually thinks Dell builds their own notebooks is kidding themselves. The only thing most of the big companies do anymore is design it. After that, they are all coming from the same outfit.

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