Where's the Beef in Acer's Gateway PC Buy? - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
Commentary
8/27/2007
04:43 PM
Fredric Paul
Fredric Paul
Commentary
50%
50%

Where's the Beef in Acer's Gateway PC Buy?

Like the Wendy's customer asked way back when: where's the beef in today's $710 million takeover of Gateway by Taiwanese computer maker Acer? Sure, the deal makes Acer the number 3 PC-maker in the world, pushing past mainland China's Lenovo (which got that big by swallowing IBM's PC business). I just don't think it's likely to have an immediate impact on small and midsize computer buyers.

Like the Wendy's customer asked way back when: where's the beef in today's $710 million takeover of Gateway by Taiwanese computer maker Acer?

Sure, the deal makes Acer the number 3 PC-maker in the world, pushing past mainland China's Lenovo (which got that big by swallowing IBM's PC business). I just don't think it's likely to have an immediate impact on small and midsize computer buyers.Christopher Null at Yahoo Tech agrees. If anything, it's likely to make Gateway purchases a bit safer, since the company had been struggling for years, showing no profits and losing a third of its sales since 2001 even after buying eMachines in 2004.

With Acer's heft behind it, we might see more effort put into the US market. Gateway's significant online presence offers a real opportunity for Acer, says Lance Ulanoff at PC Magazine. But all three brands may not survive, according to Doug Olenick at Twice. Acer and eMachines produce very similar products, Olenick says, and something's gotta give.

At the same time, the Acer-Gateway deal could kill Lenovo's talks to buy Netherlands-based Packard Bell. Antone Gonsalves at InformationWeek reports that, "Gateway owns all of the shares of Packard Bell parent company PB Holding," and Packard Bell may end up as part of Acer.

With all the of maneuvering going on, though, it may not add to much for business buyers. Gonsalves quotes Analyst Jack E. Gold of J. Gold Associates saying:

We do not believe that much will change in the overall PC market. Acer does bring lots of manufacturing muscle to the table, but the Gateway brand will remain and be primarily targeted at budget conscious consumers. It has minimal impact on the business user market.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
News
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
Slideshows
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Slideshows
Flash Poll