Is Gateway about to die?

[James_F]

http://www.wininformant.com/Articles/Index.cfm?ArticleID=37572

Looks like another bad year to Gateway. How much longer will they be able to hold out?

[gcutler]

Gateway's Death had been predicted many times over the past few years. They seem to have the ability to restructure and survive. But then again, I wouldn't buy an extended warranty from them for more than 1 year, "Dude We're Getting A Dell !!!" :D

[jeffwtux]

Is the talking cow for sale?

[Timco]

The worst thing they ever did was to open stores. The overhead alone is probably killing them.

[Mike123abc]

The latest issue of Forbes was not too confident in them. Saying to short the stock and cover at $1.50... They obviously do not think Gateway will do well at least in the short run.

[gcutler]

I believe the article said they had a Billion in cash reserves so they do have the money attempt their next plan. Its the plan after that one that might be in trouble,

[Jacob S]

They will probably get bought out or something, or merge, just as HP and Compaq did.

[James_F]

I doubt that. No one wants all those stores. HP can't afford to buy them, Dell doesn't need them, Sony could care less. Maybe some Asian company would buy them, but I just don't see it.

[gcutler]

If they close all those stores first and stay alive, then maybe they might be more attractive to a buyer. But it sounded like in the article that they wanted to make the stores even more of their income stream?

[btbrossard]

I think those stores should go.

I havn't been a Gateway store for about a year, but when I was there, they had nothing to buy and take home with you right away. I understand that Gateway wants you to buy a custom built PC, but they should have a good variety of standard sytems for purchase right away.

A good percentage of computer shoppers want to take the product home right away, even if they can't have the exact PC they wanted. Gateway customers currently have little reason to go to the store. They still have to wait the two weeks or so and have to pay shipping from the factory to their house.

Look at the way Apple stores are ran. If you want a standard Mac, you can go in and get it and bring it home. These stores have become extreamly popular.

/Benjamin

[gcutler]

Originally posted by btbrossard
A good percentage of computer shoppers want to take the product home right away, even if they can't have the exact PC they wanted. Gateway customers currently have little reason to go to the store. They still have to wait the two weeks or so and have to pay shipping from the factory to their house.

Besides shipping, I also believe they have to Tax since the stores where they exist exclude them from the "Out of State" exemption on Tax.

Everyone I have ever spoken to who went to those stores came away with the same feeling. They wanted something in hand. I think they do serve a purpose in giving people hands on look and feel and ability to talk to someone knowledgable to put together a system. But that is a "Premium" service that the markups on PCs don't allow PC vendors to afford these days. More effecient to call up gateway if you have questions than have a staffed store.

Gateway need to decide, does it want to be Dell Online or Mac Stores, it can't be 1/2 way in between.

[Bogy]

Gateway seems to have heard these complaints and made changes accordingly. If you want one of their pre-configured computers you can walk out with it right away. Of course you will have to pay sales tax, just as you would at any other store. No shipping fees. If you want to customize your computer you will have to wait 3 to 5 business days. At how many stores can you by a customized computer and walk out with it that day? My understanding is that you then can pick it up at the store and pay no shipping or handling fees. You will have to pay tax.

I think Gateway is being hurt by their original policy, and they have not done enough to let people know things have changed. My daughter is buying a new machine and one option we have looked at is Gateway. Either in the store yesterday or on their website I saw what I posted above. Today I cannot find it on the website. My opinion is that they are blowing it by not making it very clear that they have computers in stock. Too many of us remember what the policy used to be. And while many first time computer buyers wouldn't know that, how many of them don't ask one of us for recommendations? If we tell them not to go into the Gateway story because you can't get anything there anyway, they lose that customer.

If they are going to keep the stores, they have made a good policy change. But they need to do a better job of letting people know the change took place.

[gcutler]

Part of Gateway's problem has always been their backorders. I had purchased either for myself or helped other people 5 Dells in 3 years. These were all custom machines (but nothing out of the ordinary). And from ordering to delievery never took more than 5 work days. I've been lucky in that on more than one occasion, my UPS ground delivery would actually get Door-Door from Texas to Georgia in 24 hours.

[Wedgecon]

Well my current computer is a Gateway, but I only bought it because I got a really good deal on it, otherwise I could care less wether the go belly up or not.

This was the first brand name PC I had bought since my original Tandy 1000. I finally got tired of building my own PC's and unless you are a gamer or other power user it really does not pay to build your own anymore.

[James_F]

Originally posted by Wedgecon
Well my current computer is a Gateway, but I only bought it because I got a really good deal on it, otherwise I could care less wether the go belly up or not.
Thats the perfect attitude to take about this. Its like buying gas for your car. Its all the same.