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PC Maker Acer Buys Gateway

by , 9:40 AM EDT, August 27th, 2007

PC manufacturer Acer announced on Monday that it has entered into an agreement to purchase rival computer maker Gateway. Acer will purchase Gateway for US$1.90 a share, or about $710 million.

Gateway purchased low-end PC maker eMachines several years ago, which means Acer will now own that brand, too. Acer plans to use Gateway to strengthen its position in the U.S. PC market.

eMachines gained notoriety early on for selling sub-$600 computers in the late 1990's when rival PC makers offered systems starting just below $999. The company's below market prices spurred a price war that proved devastating for its competitors including HP, IBM, and Packard Bell.

The PC name roulette doesn't stop with Acer's purchase. Gateway will be exercising a first right of refusal to purchase all the shares of PB Holding Company, which is the parent company of the European PC maker Packard Bell BV. Gateway is also in negotiations to sell off its U.S.-based Professional business.

The Acer and Gateway deal is expected to be completed by December 2007.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:gordman Posts: 3 Joined: 27 Aug 2007
Subject:

Interesting enough.

Close Name:gslusher Posts: 2043 Joined: 13 Nov 2002
Subject: Who's left?

Any idea of which, if any, PC makers are still around from the mid-'80s, other than Apple?

Close Name:Terrin Posts: 357 Joined: 29 Jan 2006
Subject:

I think this move will benefit Dell, HP, and Apple because usually when companies merge like this they do not maintain all their customers.

Close Name:daemon Posts: 308 Joined: 17 May 2007
Subject:

Quote
gslusher wrote:
Any idea of which, if any, PC makers are still around from the mid-'80s, other than Apple?


Amstrad
Atari
Dell
Epson
Fujitsu
Genesi
Hewlett-Packard
IBM
NCR
NEC Corporation
Silicon Graphics, Inc
Sun Microsystems, Inc.
Texas Instruments
Tulip Computers NV

View Name:Guest
Subject:
Close Name:Intruder -   TMO Mac Specialist Posts: 2924 Joined: 07 Jul 2004
Subject:

I think the question would have been better stated as:

How many PC makers from the '90s are still making PCs?

View Name:Guest
Subject: ACK!
Close Name:daemon Posts: 308 Joined: 17 May 2007
Subject:

Quote
Guest wrote:
Amstrad -- Europe only

So what?
Quote
Atari -- nope, games only (plus several changes of ownership)
They still exsist
Quote
Dell
Epson -- no computers


Epson makes computers, as point of sale devices, but they're still computers.

Quote
Fujitsu
Genesi -- wow, no; Power-based development, no general purpose PCs, established in 2000


So what, they're still computers.

Quote
Hewlett-Packard
IBM -- no PCs in North America


Servers, workstations, and supercomputers all count.

Quote
NCR -- no PCs in North America


I work on NCR devices, they count as computers

Quote
NEC Corporation
Silicon Graphics, Inc -- bankrupt last year


They didn't go out of business.

Quote
Sun Microsystems, Inc. -- not a PC maker


Servers count.

Quote
Texas Instruments -- not a PC maker


Makes the most widely utilized computer parts for consumer electronics in the world.

Quote
Tulip Computers NV -- Europe only


What is with you and Europe?

Quote
4 out of 14 isn't so good, daemon


I'll give you Atari, since they did change hands a few times and ceased hardware sales. But it's bullshit to discount companies that operate outside the US, and if you're going to discount anything this isn't a PC, then Apple doesn't count either.

Close Name:Intruder -   TMO Mac Specialist Posts: 2924 Joined: 07 Jul 2004
Subject:

C'mon, daemon. You know they were referring to PCs, as in Personal Computers. Servers do not count as personal computers. Neither do POS machines. Or the parts (TI).

Apple does make personal computers, as in computers for sale for individual use, as well as servers and workstations.

"A personal computer (PC) is a computer whose price, size, and capabilities make it useful for individuals." -wiki


True, not fair to exclude European manufacturers, but I believe Genesi was excluded because they were founded in 2000, not the '90s (semantics).

See the restatement of the question.

Close Name:gslusher Posts: 2043 Joined: 13 Nov 2002
Subject:

Quote
Intruder wrote:
True, not fair to exclude European manufacturers, but I believe Genesi was excluded because they were founded in 2000, not the '90s (semantics).

See the restatement of the question.


Actually, my original question referred to the mid '80s, e.g., 1984-1986.

Close Name:Intruder -   TMO Mac Specialist Posts: 2924 Joined: 07 Jul 2004
Subject:

Quote
gslusher wrote:
Quote
Intruder wrote:
True, not fair to exclude European manufacturers, but I believe Genesi was excluded because they were founded in 2000, not the '90s (semantics).

See the restatement of the question.


Actually, my original question referred to the mid '80s, e.g., 1984-1986.


Oops! You are exactly correct. Misread the date. However, I believe (correct me if I am wrong), that you did intend to ask about personal computer manufacturers and whether they are still in the PC business, correct?

Close Name:daemon Posts: 308 Joined: 17 May 2007
Subject:

Quote
Intruder wrote:
C'mon, daemon. You know they were referring to PCs, as in Personal Computers. Servers do not count as personal computers. Neither do POS machines. Or the parts (TI).

Apple does make personal computers, as in computers for sale for individual use, as well as servers and workstations.

"A personal computer (PC) is a computer whose price, size, and capabilities make it useful for individuals." -wiki


True, not fair to exclude European manufacturers, but I believe Genesi was excluded because they were founded in 2000, not the '90s (semantics).

See the restatement of the question.


Bah. Are you telling me that I'm the only one with a Sun UltraSPARC I in my living room for pure fun and games?

Close Name:Intruder -   TMO Mac Specialist Posts: 2924 Joined: 07 Jul 2004
Subject:

Probably!

Close Name:daemon Posts: 308 Joined: 17 May 2007
Subject:

Quote
Intruder wrote:
Probably!


Darn.

Close Name:bb-15 Posts: 17 Joined: 21 Aug 2007
Subject: The lessons of this story

This story supports what Apple has been doing in limiting the options to its product line.

* The problem for Gateway/eMachines is that they tried to get into too many different markets. They tried to appeal to every kind of computer buyer, including gamers. That is what led to less revenue and no profit. Why? Because they were competing with much bigger companies, Dell & HP. Or much more focused companies; Acer, Lenovo and Apple.

* Success in the middle tier PC companies is shown by Apple, Acer and Lenovo. What they offer from what I can see is middle of the road in terms of performance. (They don't cater to gamers for instance.)

* There are a lot of gamers who post on the web that Apple should have more computer models and offer all sorts of graphic cards. To me the final message of this move by Acer is that not every computer company can get into the gamer market. In fact some successful smaller/middle tier companies; Acer, Lenovo and Apple, are doing well by focusing their product lines to specific markets rather than trying to sell machines to everyone which Gateway unsuccessfully tried to do.

imho at least, BB

Close Name:acdc1174 Posts: 677 Joined: 16 Apr 2004
Subject: One more lesson...

No matter how hard you try, you can't polish a turd. You can however, mash up two small turds and make one big corny stinker though.

View Name:Guest
Subject: Nope
Close Name:DrShakagee -   TMO Forum Mod Posts: 939 Joined: 14 Jun 2001
Subject:

Quote
daemon wrote:

Bah. Are you telling me that I'm the only one with a Sun UltraSPARC I in my living room for pure fun and games?


Hahaha my work still makes the programmers use Ultra 10s. If your name isn't Dmitry then you aren't the only one.

View Name:Guest
Subject: who's around still from 80s
Close Name:Intruder -   TMO Mac Specialist Posts: 2924 Joined: 07 Jul 2004
Subject:

Not entirely true, IBM has a 18.9% equity stake in Lenovo (or at least did with the initial sale). Lenovo can use the IBM name on the hardware until 2010. Not sure you can really say that IBM is manufacturing under Lenovo, as they are a minority stakeholder.

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