Gateway, what a story.
Gateway was founded on September 5, 1985, on a farm outside Sioux Cityy, Iowa, by Ted Waittt and
Mike Hammond.
Originally called Gateway 2000, it was one of the first widely successful direct sales PC
companies, utilizing a sales model copied from Dell, and playing up its Iowa roots with
low-tech advertisements proclaiming "Computers from Iowa?"
In 1989 Gateway moved its corporate offices and production facilities to North Sioux City, South Dakota.
In line with the Holstein cow mascot, Gateway opened a chain of retail stores called Gateway Country Stores, mostly
in suburbann areas across the United States.
It dropped the "2000" from its name on October 31, 1998. AOL acquired Gateway.net, the online
component of Gateway, Inc., in October 1999 for US$800 million.
Gateway struggled after the dot-com bust and tried several strategies to return to
profitability, including withdrawal from international markets, reduction in the number of retail
stores and most significantly, entering the consumer electronics business.
However, amid widespread complaints about its reputedly poor customer service, none of these
efforts was particularly successful from a financial standpoint, and Gateway continued to suffer
major losses as well as market share in the PC business.
By April 1, 2004, Gateway had announced that it would shut down its 188 remaining stores.
On March 11, 2004, Gateway purchased low-cost PC marketer eMachines, for US$30 million in cash
and 50 million shares of stock, valuing the deal at approximately US$262 million with announced
intentions to keep the eMachines brand.
Gateway has resourced customer support within North America, priding itself as "100% North America-based support".
Gateway also moved build-to-order desktop, laptop, and server manufacturing back to the United States, with the opening of its Gateway Configuration Center in Nashville, Tennessee in September 2006.
It employed 385 people in that location. As of April 2007 Gateway notebook computers were produced
in China and its desktops had "made in Mexico" stickers.
On October 16, 2007, Acer completed its acquisition of Gateway for US$710 million. J.T. Wang, the company's chairman, said in a statement that the acquisition "completes Acer's global footprint, by strengthening our U.S. presence."