It Ain't Looking Pretty For The Cow-Loving Gateway. Job Cuts, Store Closures, and Bad Q4 and Annual Results

[AGodspeed]

http://zdnet.com.com/2100-11-822554.html

PC maker Gateway on Thursday confirmed a steep drop in fourth-quarter sales, announced more job cuts and store closures, and said it would reduce PC prices.

Toward the end of 2000, Dell Computer began to aggressively cut prices in an effort to gain market share. The company's actions largely decimated desktop profits at companies such as Compaq Computer and helped accelerate consolidation in the industry. Micron Electronics changed hands in March 2001. And on Labor Day, Hewlett-Packard announced plans to acquire Compaq. Gateway, meanwhile, has been losing market share since late 2000.

Man, Dell is really tearing it up. Hopefully I'll keep my job. :Q

 

[PH0ENIX]

Yeah - Gateway looks to have been in decline for a while...

I dont know what it's like in the US, but it's pretty easy to see why they pulled out of Aussieland and New Zealand.

The machines themselves actually weren't that bad, but it's when you hit a problem - that it really becomes just that, a problem.
Their 'tech support' leaves a lot to be desired, spare part availability was always about 2-4 weeks, and they weren't even very competetively priced...

Nothing wrong with their product, I guess, just mainly from a service perspective.
Now, on top of that, they've left all their ANZ customers high and dry - with no authorized re-sellers or service centres in the entire ANZ area!

You work for Dell or Gateway Agodspeed?

 

[AndyHui]

After the complete mess they made of the withdrawal from Australia and NZ (people with the 21 inch, 19 inch monitors, and Boston Acoustics BA7500 4.1 and 2.1 speakers know what I am talking about), I must say that I am not surprised.

While it is somewhat vindictive of me to say it after they screwed me around so much, good riddance.

 

[bluemax]

I remember when Gateway 2000 was where Dell is today. They had the cool cases, cool boxes, good prices, good components and people wanted them. Today... well.
Gateway Country (B&M location) here in Winnipeg lasted only 3-4 *months* before it closed up shop and disappeared. I figured out when that happened last year, Gateway wouldn't be around much longer.

 

[Armitage]

They never should have mucked around with B&M stores. If people want to buy a computer @ a B&M they'll go to BestBuy, CompUSA, etc.

 

[Shudder]

Aww, poor babies.

Maybe if they didn't sell their $oul to Intel only they'd be in better shape.

 

[Ryan]

Man, I really like gateway. I bought on of their first computers back when they first started in south dakota (where I lived). They are about the only OEM computer maker I'll buy from. Not to mention that I got my current system fom them (my parents bought it for me - a birthday present). I have owned 6 gateway computers, and I have to say that I am VERY happy with everyhting about them. When I had to have a part replaced, it was sent to me within 4 days, I have never had any incompatability problems, their customer service has been great - not to mention that they paid for all the tech support phone calls when I called them from overseas 2 years ago (the total bill was over $200, but they offered to pay every penny before I even mentioned it to them.). I don't know why their support is seen by many people as shotty, but it has been EXCELLENT for me. I guess it's brand loyalty. I even want to work at their local Gateway country store. Hopefully Ted Waitt will turn the company around. You can read a conversation with him @ http://zdnet.com.com/2100-1103-821263.html

 

[JellyBaby]

<< Maybe if they didn't sell their $oul to Intel only they'd be in better shape. >>

Not sure if that's fair. At one point they offered AMD systems and their reasons for dropping them were legit. That's more than you can say for Dell.

 

[Shudder]

Dell initially had bad sales as well when they said they'd stick to only intel. I still don't think dell's all that wonderful, but I guess when you drop the drawers for intel you do buy your chips really cheap, so they still probably made money off it, moreso than intel would over the deal.

 

[Ryan]

<<

<< Maybe if they didn't sell their $oul to Intel only they'd be in better shape. >>

Not sure if that's fair. At one point they offered AMD systems and their reasons for dropping them were legit. That's more than you can say for Dell. >>



Yes, I think gateway's reasons were legit. They were loosing tons of mony - and a good way to cut production costs is to standardize all of their computers. I would rather see them dump AMD (I'm an AMD supporter, I even have a Gateway AMD computer) and survive, then to sell AMD and die.

 

[GTaudiophile]

I myself owned two Gateways: a Pentium Pro 200Mhz system that lasted from 1996-2001 and a PII-450/440BX that is still going strong, albeit replaced by my new hand-built system. (The 440BX system will live on as a Linux box as soon as I can set it up.)

The PPro200 system was my first PC, and I often got into trouble, needing tech support. Gateway Tech Support spent up to 5 hours on the phone with me once and always promptly replaced defective parts (Philips CD-RW and STB TV/FM Tuner card) with few questions asked. Always professional.

Oh well. Such is life. They'll be missed.

 

[bluemax]

Remember when Amiga was purchased by Gateway? What happens now?

 

[Ryan]

Why is everyone talking like they are gonna go under? I don't think they will. These are just hard times. They'll pick up again

 

[T2T III]

<< If people want to buy a computer @ a B&M they'll go to BestBuy, CompUSA, etc. >>


Yeah, but the Gateway concept is a little different. You can only *see* and *play* with the potential computer you want to purchase and then make the purchase, if you want. However, you have to wait to get it delivered unlike BB and CunnyUSA. I think this is a neat concept, but when computers are only $1,000, then people might be a little more confident to just place and order without having to see the item. This works for Dell. But, if computers were still $3,500, seeing what you were going to purchase before making the purchase would have worked out well.

 

[Raspewtin]

god i hate gateway. i had to literally argue with them for hours to replace defective parts. Even though I live in San Diego, I would not be sorry in the least to see them die. the only reason i would not want to see them go is b/c of the role they place in the pc market. i doubt they are going to kick over though

 

[AGodspeed]

You work for Dell or Gateway Agodspeed?

I work for Gateway. I was really scared that Gateway might be closing our store. Turns out we're staying.

Personally, I've had very good experiences with Gateway. They're a good company IMO.