Mntsnow
02-02-2004, 7:29 AM
PC FIRM Gateway has been on a decline for years. During this time, eMachines has been carefully building up market share around the globe, working out the bugs in its company, and cutting costs. It's had the eighth profitable quarter in a row, according to a recent Forbes.com article, and eMachines has the lowest level of overhead costs in the PC industry. Dell, always praised, had 8.4%, compared to 16% over at HP, and 26% at Gateway.
EMachines delivers machines at 5.8%.
While the deal is being heralded as a purchase of eMachines by Gateway for $30 million in cash and 50 million shares, eMachines Wayne Inouye, will become Gateway's CEO. Founder Ted Waitt will remain chairman of the board, but if I was working for the Cow, I'd be strongly worried about my future employment prospects. Since Wayne is in charge, I suspect he has the mandate to play bad guy and get rid of a lot of "overhead." With eMachines cranking out machine so cheaply, and Gateway carrying around 26% fat per machine they sell, you can practically smell the chainsaw exhaust.
Read more (http://www.theinquirer.net//?article=13932)
EMachines delivers machines at 5.8%.
While the deal is being heralded as a purchase of eMachines by Gateway for $30 million in cash and 50 million shares, eMachines Wayne Inouye, will become Gateway's CEO. Founder Ted Waitt will remain chairman of the board, but if I was working for the Cow, I'd be strongly worried about my future employment prospects. Since Wayne is in charge, I suspect he has the mandate to play bad guy and get rid of a lot of "overhead." With eMachines cranking out machine so cheaply, and Gateway carrying around 26% fat per machine they sell, you can practically smell the chainsaw exhaust.
Read more (http://www.theinquirer.net//?article=13932)