Gateway, Inc.
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Gateway, Inc., previously Gateway 2000, is an American
computer hardware Computer hardware includes the physical parts of a computer, such as the case, central processing unit (CPU), random access memory (RAM), monitor, mouse, keyboard, computer data storage, graphics card, sound card, speakers and motherboard. ...
company. The company developed, manufactured, supported, and marketed a wide range of
personal computer A personal computer (PC) is a multi-purpose microcomputer whose size, capabilities, and price make it feasible for individual use. Personal computers are intended to be operated directly by an end user, rather than by a computer expert or te ...
s,
computer monitor A computer monitor is an output device that displays information in pictorial or textual form. A discrete monitor comprises a visual display, support electronics, power supply, housing, electrical connectors, and external user controls. The ...
s, servers, and computer accessories. It was acquired by hardware and electronics corporation Acer, in October 2007. In 2020, Walmart had announced a deal with Gateway in partnership with THX to revive the Gateway brand launching various devices from tablets, convertibles, and budget laptops.


History

Gateway was founded on September 5, 1985, on a farm outside
Sioux City Sioux City () is a city in Woodbury and Plymouth counties in the northwestern part of the U.S. state of Iowa. The population was 85,797 in the 2020 census, making it the fourth-largest city in Iowa. The bulk of the city is in Woodbury County ...
,
Iowa Iowa () is a U.S. state, state in the Midwestern United States, Midwestern region of the United States, bordered by the Mississippi River to the east and the Missouri River and Big Sioux River to the west. It is bordered by six states: Wiscon ...
, by Ted Waitt, Norm Waitt (Ted's brother), and Mike Hammond. The origins of the company's name and cow motif can be traced to the meatpacking industry in the Sioux City area in the late 19th century. Before the Big Sioux and Missouri rivers were spanned by bridges, it was common to transport cattle into Sioux City by ferry, and every so often, a cow would slip off the ferry deck. The farmers were often left with no choice but to give up the cow for lost and get the rest across the fast-moving river. Ted Waitt's ancestor was an enterprising individual who would round up these cattle before they could drown and sold them to the meatpacking plants once rescued. Also, North Sioux City, SD is sometimes referred to as the "Gateway to South Dakota" due to its location. Gateway 2000 was also an innovator in low-end computers with the first sub-$1,000 name-brand PC, the all-in-one Astro. Gateway built brand recognition in part by shipping computers in spotted boxes patterned after
Holstein cow Holstein Friesians (often shortened to Holsteins in North America, while the term Friesians is often used in the UK and Ireland) are a breed of dairy cattle that originated in the Dutch provinces of North Holland and Friesland, and Schleswig-H ...
markings. In 1989, Gateway moved its corporate offices and production facilities to North Sioux City,
South Dakota South Dakota (; Sioux: , ) is a U.S. state in the North Central region of the United States. It is also part of the Great Plains. South Dakota is named after the Lakota and Dakota Sioux Native American tribes, who comprise a large po ...
. In 1997, Gateway acquired
Advanced Logic Research Advanced Logic Research, Inc. (ALR), was an American computer company founded in 1984 in Irvine, California by Gene Lu. The company marketed IBM PC compatibles across that standard's evolution until 1997, when it was acquired by Gateway 2000. AL ...
, a maker of high-end personal computers and servers. Gateway dropped the "2000" from its name on October 31, 1998, recognizing that the year 2000 would soon cease to be futuristic. In line with the Holstein cow mascot, Gateway opened a chain of "farm-styled" retail stores called Gateway Country Stores, mostly in
suburb A suburb (more broadly suburban area) is an area within a metropolitan area, which may include commercial and mixed-use, that is primarily a residential area. A suburb can exist either as part of a larger city/urban area or as a separ ...
an and rural areas across the
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. The first of these stores opened in 1996. At the chain's peak in 2001, there were over 300 locations across the country, and the stores are said to have inspired the launch of the
Apple Store The Apple Store is a chain of retail stores owned and operated by Apple Inc. The stores sell various Apple products, including Mac personal computers, iPhone smartphones, iPad tablet computers, Apple Watch smartwatches, Apple TV digital me ...
that same year. Gateway Country stores were primarily showrooms for the company's computers, allowing customers to meet with a salesperson and customize computers that would be shipped to their homes, and only offered a small selection of its most popular models to be purchased in the store. While the stores were more profitable than the company's other sales venues, dozens were closed as the company struggled throughout the early 2000s. The last remaining stores closed in 2004.
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acquired Gateway.net, the online component of Gateway, Inc. in October 1999 for US$800 million. To grow beyond its model of selling high-end PCs by phone, and to attract top management and engineers, Gateway relocated its base of operations to
La Jolla La Jolla ( , ) is a hilly, seaside neighborhood within the city of San Diego, California, United States, occupying of curving coastline along the Pacific Ocean. The population reported in the 2010 census was 46,781. La Jolla is surrounded on ...
,
California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
, in May 1998. In an effort to cut operating costs, Gateway made another move, this time to
Poway, California Poway () is a city in San Diego County, California, United States. The unincorporated community became a city on December 1, 1980. Poway's rural roots influenced its motto "The City in the Country". The city has a population of 49,701 as of ...
, in October 2001. After acquiring
eMachines eMachines was a brand of economical personal computers. In 2004, it was acquired by Gateway, Inc., which was in turn acquired by Acer Inc. in 2007. The eMachines brand was discontinued in 2013. History eMachines was founded in September 1998 by ...
in 2004, Gateway again relocated its corporate headquarters, to Irvine,
California California is a state in the Western United States, located along the Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the most populous U.S. state and the 3rd largest by area. It is also the m ...
. In 2000, Gateway announced a partnership with
OfficeMax OfficeMax is an American office supplies retailer founded in 1988. It is now a subsidiary of The ODP Corporation, which is headquartered in Boca Raton, Florida. As of December 2012, OfficeMax operated 941 stores in 47 states, Puerto Rico, the U ...
to sell its computers in store through the Gateway Country Branding. In 2001, Office Max Announced that it was replacing Gateway with the HP Brand. In 2003, the
Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
filed fraud charges against three former Gateway executives: CEO Jeff Weitzen, former chief financial officer John Todd, and former controller Robert Manza. The lawsuit alleged that the executives engaged in securities violations and misled investors about the health of the company. Weitzen was cleared of securities fraud in 2006; however, Todd and Manza were found liable for inflating revenue in a jury trial which concluded in March 2007. Gateway moved build-to-order desktop, laptop, and server manufacturing back to the United States with the opening of its Gateway Configuration Center in
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, in September 2006. It employed 385 people in that location. By April 2007, Gateway notebook computers were produced in
China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's List of countries and dependencies by population, most populous country, with a Population of China, population exceeding 1.4 billion, slig ...
and its desktops had "made in
Mexico Mexico (Spanish language, Spanish: México), officially the United Mexican States, is a List of sovereign states, country in the southern portion of North America. It is borders of Mexico, bordered to the north by the United States; to the so ...
" stickers. On October 16, 2007, Acer completed its acquisition of Gateway. In September 2020, Acer granted Gateway branding and licensing rights to Bmorn Technology, a
Shenzhen Shenzhen (; ; ; ), also historically known as Sham Chun, is a major sub-provincial city and one of the special economic zones of China. The city is located on the east bank of the Pearl River estuary on the central coast of southern provi ...
based technology company to manufacture and sell Gateway branded laptops and tablets through
Walmart Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores from the United States, headquarter ...
. The new line of laptops is a simple
rebadging In the automotive industry, rebadging is a form of market segmentation used by automobile manufacturers around the world. To allow for product differentiation without designing or engineering a new model or brand (at high cost or risk), a m ...
of Acer's existing EVOO branded laptops. The laptops are tuned in partnership with THX.


Current and previous products


Previous hardware

In September 2002, Gateway entered the
consumer electronics Consumer electronics or home electronics are electronic ( analog or digital) equipment intended for everyday use, typically in private homes. Consumer electronics include devices used for entertainment, communications and recreation. Usuall ...
market with aggressively priced plasma TVs. At the time, Gateway's US$2,999 price for a 42" plasma TV undercut name-brand competitors by thousands of dollars per unit. In 2003, the company expanded the range of plasma TVs and added
digital camera A digital camera is a camera that captures photographs in digital memory. Most cameras produced today are digital, largely replacing those that capture images on photographic film. Digital cameras are now widely incorporated into mobile devices ...
s, DLP projectors, wireless Internet routers, and MP3 players. By early 2004, in terms of volume, Gateway had moved into a leadership position in the plasma TV category in the United States. However, the pressure to achieve profits after the acquisition of
eMachines eMachines was a brand of economical personal computers. In 2004, it was acquired by Gateway, Inc., which was in turn acquired by Acer Inc. in 2007. The eMachines brand was discontinued in 2013. History eMachines was founded in September 1998 by ...
led then-CEO Wayne Inouye to phase Gateway-branded consumer electronics out of their product line that same year.


eMachines

eMachines was founded in 1998, brand of low-end personal computers. It was acquired by Gateway, Inc. in 2004. In 2013, the eMachines brand was discontinued by Acer Inc., which acquired Gateway in 2007.


See also

* List of computer system manufacturers


References


External links


Gateway world wide portal
* * * * {{Authority control Acer Inc. acquisitions Companies based in Irvine, California American companies established in 1985 Computer companies established in 1985 1985 establishments in Iowa Computer companies of the United States Amiga companies Display technology companies 2007 mergers and acquisitions American subsidiaries of foreign companies