Gateway spreads out at retail
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Gateway computers will be more widely available at Office Depot, in the PC maker&#39;s latest move to broaden distribution at retail stores since acquiring rival eMachines this year.
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Faced with lagging sales and a plummeting stock, the computer maker tries a new tack: retail stores
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Shares of Gateway rose more than 11 percent in after-market trading yesterday after the computer company said it posted its first operating profit in three years.
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PC maker Gateway Inc. said on  Sunday its new line of notebooks, desktop personal computers  and monitors aimed at retail markets will be available at Micro  Center's 20 stores in the United States.
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(InfoWorld) - Gateway has rejected an offer to sell its retail arm to the California man who founded the company's eMachines line. Lap Shun "John" Hui surprised Gateway's board in August when heÂ offered to buy their retail operationsÂ for a reported $450 million. Gateway issued a statement Friday saying it had decided that the offer was not in the best interest of its shareholders. In 2004, Gateway paid Hui $234 million to acquire his company eMachines, a line of entry-level PCs. Hui used the money to start an office supplies company, and still owns about 5 percent of Gateway's stock. Hui's offer would have stripped Gateway of its agreements with third-party resellers like Best Buy Co., Circuit City Stores, and Wal-Mart Stores. The company sells the rest of its computers through direct sales channels on the telephone and Internet, and through its professional business channel. Gateway, of Irvine, California, is the third-largest PC vendor in the U.S. but has posted financial losses for several quarters. Still, analysts said that breaking the company up would not have made it more competitive.
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The massive retailer has reportedly renewed efforts to build its presence there.
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Gateway has released two additional Media Center PCs in the hope that consumer excitement over multimedia will boost what is forecast as a weak Christmas season for consumer PCs.
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The retailer has a winning formula.
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Computer manufacturer Gateway has added Micro Center to the list of retailers selling its new line of retail notebooks, desktops and monitors.
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Acer's planned purchase of Gateway Inc. for $710 million, announced on Monday, means another reordering of the PC marketplace, analysts said.
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Sorting the leaders from the laggards in the land of retail.
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&quot;Gateway&#39;s newly-established relationship with Micro Center is a very exciting one,&quot; said Bob Davidson, senior vice president of retail at Gateway.
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Gateway Inc. GTW.N on Monday said it  would return to its roots as a personal computer company,  backing off on an aggressive strategy of expanding into TVs,  digital cameras and other gadgets in a move to return to  profitability.
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Retail giant is bigger than some entire industries, even many countries.
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PC maker Gateway Inc. announced on Sunday that its recent line of laptop computers, desktop computers, and monitors will be available to customers at Micro Center.
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Gateway released the specifications this week for a retail desktop PC based on a new motherboard design that should help cool high-end processors and graphics cards.
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Personal computer maker Gateway  Inc. GTW.N on Thursday posted its first operating profit in  nearly three years as its retail strategy gained traction and  costs fell, sending shares up 11 percent.