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Gateway 2000

Gateway Inc.
Subsidiary
Industry Computer hardware, software & services
Fate Acquired by Acer Inc. on October 16, 2007
Founded September 5, 1985; 31 years ago (1985-09-05) (as Gateway 2000)
October 31, 1998 (1998-10-31) (as Gateway)
Sioux City, Iowa, U.S.
Defunct October 16, 2007
Headquarters Irvine, California, U.S.
Key people
Products Desktops, Laptops, Servers, Monitors.
Revenue IncreaseUS$3.980 billion (2006)
Parent Acer Inc. (2007)
Subsidiaries eMachines (now-defunct)
Website www.gateway.com

Gateway Inc. was an American computer hardware company based in South Dakota, that developed, manufactured, supported, and marketed a wide range of personal computers, computer monitors, servers, and computer accessories. It became a well-known brand in 1991 when it started shipping its computer hardware in piebald boxes and for its creative advertising in Computer Shopper and other magazines. Gateway was acquired by Acer in October 2007, for approximately US$710 million.

Gateway outsourced some of its operations, such as customer support. In 2002, Gateway expanded into the consumer electronics world with products that included plasma screen TVs, digital cameras, DLP projectors, wireless Internet routers, and MP3 players. While the company enjoyed some success in gaining substantial market share from traditional leaders in the space, particularly with plasma TVs and digital cameras, the limited short-term profit potential of those product lines led then-CEO Wayne Inouye to pull the company out of that segment during 2004. Gateway still acts as a retailer selling third-party electronic goods online.

Gateway was founded on September 5, 1985, on a farm outside Sioux City, Iowa, by Ted Waitt 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?" Gateway built brand recognition in part by shipping computers in spotted boxes patterned after Holstein cow markings. 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 farm-styled retail stores called Gateway Country Stores, mostly in suburban areas across the United States. It dropped the "2000" from its name on October 31, 1998.


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