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Gateway was founded on Sept. 5, 1985, in Sioux City, Iowa, by brothers Ted and Norman Waitt and their friend, Mike Hammond. It was originally named "Gateway 2000," and played up its rural roots by adopting the black and white markings reminiscent of a Holstein cow as its logo. The company's sales model consisted of selling high-end PCs over the phone.
After moving its corporate offices from Sioux City, Iowa, to North Sioux City, S.D., in 1989, Gateway opened a chain of retail stores to cater to both business and consumer markets. In 1998, Gateway moved to La Jolla, California, and then to Poway, California in 2001. The company acquired eMachines in 2004, and entered the consumer electronic market with a line of laptop computers. At this time, Gateway relocated its corporate headquarters to Irvine, California.
Since the companyhad suffered several losses during the "dot-com" bust, ithad also begun outsourcing production to China and Mexico. By April 2007, its laptop computers were made in China.
In October 2007, Acer acquired Gateway for $710 million and by 2008, Gateway ended all direct sales through its website and stopped taking orders over the phone. Gateway products were then made available to select retailers online and offline. -
In Gateway's 2006 Annual Report, the company identifies its three major business markets: the "Direct" segment, "Professional" segment and "Retail" segment. The Direct segment sells laptops and desktops to consumers and companies online and via call centers. The Professional segment sells computers to medium-to-large sized businesses, schools and colleges, and government entities, either online, in-person, or over the phone. The Retail segment sells computers directly to retail stores.
According to an official transition press release posted on Gateway.com, Gateway shifted to a 100 percent indirect-sales model as of July 27, 2008. That means that all Gateway laptop computers are only available through certain retail stores across the country.
Consumers can now browse the online catalog to review product lines, and locate a retailer in their area (or one that sells Gateway products online). Current retailers that carry Gateway laptops include Fry's Electronics, Staples, Amazon.com, HSN, Office Depot, OfficeMax and Walmart. - Gateway currently produces and markets several models of laptops, including the LT Series, T Series, M Series, MD Series, NV Series, MC Series and P Series. Prices range from $399.99 to $1,099.99, and some models in each series have upgrade options and are customizable.
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The LT Series is an 11.6" screen netbook designed for users who need a lightweight, ultra-portable device for connecting to the Internet. This miniature laptop is designed for note-taking, playing DVDs and downloading videos and movies from the Internet.
The T-Series is a 14.1" screen notebook computer with advanced multimedia technologies. That series is designed for light use by students or business professionals.
The M-Series features a 15.4" HD widescreen with more power than the T-Series, and extra multimedia features.
The MD Series offers advanced multimedia features with a 15.6" screen for cinema-quality movie experiences.
The MC Series has a 16" screen with advanced multimedia features, illuminated controls and a stylish interface, and is intended for multimedia professionals or consumers whose primary computer is a laptop.
The P Series is designed primarily for gamers and for playing movies, and features a 17" screen and advanced multimedia features. - In the United States, Gateway laptops compete against Hewlett-Packard, Apple, Dell, Sony, Toshiba, and Lenovo. Fujitsu, Acer and Packard Bell are the major competition for Gateway laptops and PCs overseas.
