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Gateway closing all its retail stores, eliminating 2,500 jobs
Associated Press ^ | 4-1-04

Posted on 04/01/2004 2:28:38 PM PST by Oldeconomybuyer

Edited on 04/13/2004 2:46:16 AM PDT by Jim Robinson. [history]

POWAY, Calif. (AP) -- Troubled computer maker Gateway Inc. announced Thursday it will shutter all of its retail stores next week, eliminating 2,500 jobs.

The company, based in the San Diego suburb of Poway, said its 188 stores will close on April 9 and workers will be let go as the store operations wind down.


(Excerpt) Read more at sfgate.com ...


TOPICS: Business/Economy; Miscellaneous; News/Current Events; Technical; US: California; US: Iowa
KEYWORDS: gateway; layoffs; retail
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1 posted on 04/01/2004 2:28:39 PM PST by Oldeconomybuyer
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To: Oldeconomybuyer
Bush!
2 posted on 04/01/2004 2:29:25 PM PST by Guillermo (Your own personal Konservative Klick-Guerilla)
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To: Oldeconomybuyer
It's about time.
3 posted on 04/01/2004 2:29:30 PM PST by Huck (In the Soviet Union, the Admin Moderators ruled.)
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To: Oldeconomybuyer
Oops! I knew this was going to happen. When the stores first opened, at least the one in my area, you couldn't walk in, buy a computer, then walk out. Next door to the Gateway store was a Best Buy, where you could do just that.

Silly Gateway.
4 posted on 04/01/2004 2:30:25 PM PST by MineralMan (godless atheist)
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To: Oldeconomybuyer; Willie Green
Willllllieeeeeeeeeeeeeee
5 posted on 04/01/2004 2:31:29 PM PST by Drango (2 FReep is 2B --- 2B is 2 FReep)
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To: All

Donate Here By Secure Server
6 posted on 04/01/2004 2:31:37 PM PST by Support Free Republic (Hi Mom! Hi Dad!)
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To: Oldeconomybuyer
What happened to Gateway? Thee computers are not that bad. Was this retail store concept part of their demise?
7 posted on 04/01/2004 2:31:52 PM PST by The South Texan (The Democrat Party and the leftist (ABCCBSNBCCNN NYLATIMES)media are a criminal enterprise!)
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To: Huck
No lie. No need for bricks and mortar with Gateway.
8 posted on 04/01/2004 2:32:43 PM PST by annyokie (There are two sides to every argument, but I'm too busy to listen to yours.)
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To: MineralMan
Their 'retail' stores were more like new car showrooms, without the inventory. Bad marketing move.
9 posted on 04/01/2004 2:34:15 PM PST by Viking2002
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To: Oldeconomybuyer
I walked into a Gateway store once and wandered around for 15 minutes waiting for one of the 5 or 6 salespeople who seemed to have nothing to do to ask me, for example, if I was interested in buying a computer. No soap. No sale. I walked out. It has been clear for well over a year that Gateway made a huge (make that hugh) mistake going into B&M retail. No surprise to me that they are bailing out. Dell has them beat and beat bad. I predict there will be no such thing as Gateway Computer in five years maybe less.
10 posted on 04/01/2004 2:34:20 PM PST by InterceptPoint
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To: Guillermo
Bush!

Nah it was that cow with the Steve Wright voice. Sorry but buying a computer from a talking bovine didn't click with me.

Although expect an avalanche of replies of doom and gloomers blaming this on everyhting but Gateway themselves.

11 posted on 04/01/2004 2:34:21 PM PST by Dane
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To: MineralMan
I noticed that too a few years ago when I went in ... then, a few weeks ago, I noticed the building was empty ...

In 1989/1990, Gateway had a chance to really sit on top of the computer market ... and then their quality just went downhill ... I was afraid to buy one after client after client kept tossing the Gateway's out in favor of Compaq or Dell (which of couse are not perfect either) ...

Micron PC was hot for awhile but I've not heard much of them lately ...
12 posted on 04/01/2004 2:34:47 PM PST by Bobby777
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To: The South Texan
They make an excellent computer, if you are knowledgable enough to build your own online. Hubby has a Gateway notebook. Their sales reps suck and are arrogant Gen Z types for the most part.

They made an astute business decision and decided to do the Dell thing.
13 posted on 04/01/2004 2:35:02 PM PST by annyokie (There are two sides to every argument, but I'm too busy to listen to yours.)
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To: MineralMan
...I knew this was going to happen...

Me too. The stores were a drain and never profitable.

14 posted on 04/01/2004 2:35:41 PM PST by Oldeconomybuyer (The democRATS are near the tipping point.)
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To: Oldeconomybuyer
All of them?? Can you say, "Clearance sale?"
15 posted on 04/01/2004 2:36:44 PM PST by Porterville (Real men vote Republican,)
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To: InterceptPoint
Same thing happened to me. They were actually quite rude to me. Their loss.
16 posted on 04/01/2004 2:36:56 PM PST by CasearianDaoist
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To: annyokie
Apple stores, on the other hand, are pretty cool. Very well laid out, staffed with very knowledgeable staff, and overall a very pleasant environment.
17 posted on 04/01/2004 2:37:24 PM PST by johnfrink
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To: Oldeconomybuyer
I thought Gateway was the best in the early 90's. Then, around 1995, there was a 2.5 hour wait for tech support. In my opinion that's when they lost the war with Dell. Does anyone know if these stores have a lot of samples of the Plasma TV's? There is one near me, perhaps I can grab a floor model plasma TV on the cheap.
18 posted on 04/01/2004 2:37:58 PM PST by Rodney King (No, we can't all just get along)
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To: Oldeconomybuyer
My husband's heart is going to be broken. I've been telling him to buy that Plasma TV!

They had the best prices in town..shoot.

sw

19 posted on 04/01/2004 2:38:26 PM PST by spectre (Spectre's wife (He who hesitates is lost)
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To: Oldeconomybuyer
Of course that is the fault of Bush too. Anything that goes wrong is always HIS fault.
20 posted on 04/01/2004 2:38:51 PM PST by nmh (Intelligent people recognize Intelligent Design (God).)
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To: Oldeconomybuyer
Probably not an April Fools' joke.
21 posted on 04/01/2004 2:39:11 PM PST by anonymous_user (Only fools trust the partisan media.)
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To: annyokie
isn't it amazing that a high tech comopany could open 2500 stores with such a failed strategy? I also walked in a Gateway store ONCE because it quickly became apparent that the computer I could get many weeks later would be overpriced compared to the same features available asap next door.

If companies can go so wrong in a competitive economy, now apply that lesson to allowing the government to provide services with zero competition and even less honest feedback going into the decisions.

22 posted on 04/01/2004 2:40:36 PM PST by Williams
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To: Oldeconomybuyer
Oh, only 188 stores and 2500 jobs. Still.
23 posted on 04/01/2004 2:41:23 PM PST by Williams
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To: johnfrink
You are right about Apple Stores,They are just fun to be in..
24 posted on 04/01/2004 2:42:48 PM PST by cmsgop (For Gosh Sake MCI, NO MORE JAMES TAYLOR !!!!!!!!!!!!)
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To: The South Texan
What happened to Gateway? Thee computers are not that bad.

Wal-Mart Sells PCs With Sun's Java Desktop System techweb ^ | March 31, 2004

Posted on 03/31/2004 2:15:44 PM EST by stainlessbanner

Sun has finally found an American partner for its Java Desktop System (JSD), the company's Linux-based alternative to Microsoft Windows: über-retailer Wal-Mart.

Wal-Mart on Tuesday began selling low-cost Microtel PCs pre-loaded with JDS, offering several systems at prices ranging from $298 to $698.

Java Desktop System, which runs on Linux, includes the Gnome desktop, StarOffice productivity suite, Mozilla Web browser, and the Evolution e-mail client, and is Sun's pitch as a replacement for Windows and Microsoft Office in both the consumer and enterprise arenas.

On Tuesday, Sun said that it was seriously considering Wal-Mart as the sole PC supplier for JDS-equipped computers.

To prove the point, Wal-Mart's online and retail stores have begun selling systems like the Microtel SYSWM8001, which uses an AMD 1.6GHz Duron processor, comes with 128MB of memory, and a 40GB hard drive for less than $300. The 8001, as well as four other Microtel models, come standard with JDS.

25 posted on 04/01/2004 2:44:19 PM PST by Capt. Tom (Don't confuse the Bushies with the dumb republicans. - Capt. Tom)
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To: Bobby777; The South Texan
Back in the 386 and 486 days of Windows 3.0 and 3.1, Gateway was a cheaper alternative to Compaq or Northgate, like Dell and Micron. But, Gateways had some compatability problems in those days, and if you really cared about being able to run everything, you bought a Northgate or Micron, or maybe a Dell. Northgates were very good, but expensive. Best keyboard around, though, I still have a couple of them.

Dell did really well in the laptop market, putting real pressure on Micron, whose notebooks never caught on. I bought several Microns, and they were excellent machines.

The worst computer I ever owned is a Compaq. You couldn't give me a new Compaq!

26 posted on 04/01/2004 2:44:22 PM PST by CatoRenasci (Ceterum Censeo [Gallia][Germania][Arabia] Esse Delendam --- Select One or More as needed)
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To: Porterville
"All of them?? Can you say, "Clearance sale?"

Hmmm... that's what I was thinking. I would love to get my hands on some of that old barn board and knotty pine flooring... That couch in their simulated rec room was pretty comfortable too. And I sure could go for some of those bar stools at each of the demo stations.

Computers? Oh, yeah, well it would have to be an awfully sweet deal.

27 posted on 04/01/2004 2:44:32 PM PST by Hatteras
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To: johnfrink
I find our local Apple store dangerous....


.... to my checking account!

:-)

Seriously: Everything you said is true.
28 posted on 04/01/2004 2:45:11 PM PST by tiamat ("Just a Bronze-Age Gal, Trapped in a Techno World!")
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To: Guillermo
This sucks.. though I'm not surprised.

Several years ago, my wife bought a notebook... I told her to get a Gateway because there was a Gateway store not too far away. When we have had problems with it, it was nice to go down the block for tech support.

Of course, I've never needed tech support with the Dells I've owned....

hmmmm
29 posted on 04/01/2004 2:45:43 PM PST by birbear (I'll take Things Nobody Knows for $300, please, Alex.)
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To: The South Texan
"What happened to Gateway?"

Their fatal mistake was agreeing to collect sales tax for every state that has one. People don't want to pay both shipping and sales tax.
30 posted on 04/01/2004 2:45:50 PM PST by doug9732
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To: spectre
Wait a minute... You were telling your husband to buy a plasma TV? Just dang. Do you have a sister?
31 posted on 04/01/2004 2:46:13 PM PST by Hatteras
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To: CasearianDaoist
Same thing happened to me. They were actually quite rude to me.

You said it! They had computers in their stores where you could surf the net. So one day I logged onto the FR and some Nerd Gateway guy walks over and gave me an annoying lecture. I never went back.

32 posted on 04/01/2004 2:46:43 PM PST by PJ-Comix (Saddam Hussein was only 537 Florida votes away from still being in power)
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To: Oldeconomybuyer
I hate to hear this. The Gateway store in Springfield, MO, gives great service and has some of the nicest, most helpful sales staff I've ever met. I bought a computer system for my home-based business from that store about 2-1/2 years ago and it was great to walk in there, pay for it and walk out with it.

About a month ago, my CD rom drive got messed up and I had to have a new one. I went down to the Gateway store in Springfield, they ordered it and it was delivered to my house the next day. They told me, since my computer was still under warranty, to bring it down to them when the CD rom came in and they would install it. I walked in the door with my computer, gave it to the guy at the repair desk and it was installed in 15 minutes. I was out the door and on my way and it works great.

I've only had to call tech support one time with my Gateway (about 2 months ago) in the 2-1/2 years I've owned it. I spoke to an American computer tech and he solved my problem in 10 minutes (including time spent on hold).

I'm a VERY satisfied Gateway customer!
33 posted on 04/01/2004 2:48:11 PM PST by EagleMamaMT
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To: Oldeconomybuyer
No big surprise here: Texas Instruments, HP, Gateway, Intel,& AMD are going to get there pants sued off by Intergraph for IP infringment...The hardest hit will probably be the Intel retailers...HP & Gateway. Dell got "off the hook"...see below.

AMD has filed a countersuit against Intergraph

Intergraph gets a $225,000,000 (yep thats almost a quarter billion) payout out of INTEL...

Now Intergraph is gunning for the INTEL OEM's...

As part of the settlement, Integraph will grant a licence to Dell to use some of its technologies, and drop it from a case it's pursuing which also includes HP and Gateway. That trial is set to start on August 2nd next.

What's Dell got to do with the Intel case? According to Intergraph, Dell filed a counterclaim against Intel last year.

34 posted on 04/01/2004 2:49:19 PM PST by MD_Willington_1976
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To: Bobby777
In 1989/1990, Gateway had a chance to really sit on top of the computer market ... and then their quality just went downhill ..

My first computer that I bought was around Labor Day 94. It was a Packard Bell with a 420MB hard drive and a 486 DX/2 66 MHz processor(monitor and printer included) from a Circuit City for around $1200.

The second one was from an ad in the Computer Shopper.

35 posted on 04/01/2004 2:49:22 PM PST by Dane
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To: Viking2002; MineralMan
Their 'retail' stores were more like new car showrooms, without the inventory. Bad marketing move.

We had a Gateway store for about 6 months several years ago. The funny thing was you couldn't even order high end workstations from them. Those had to be ordered directly from their website or from the salespeople over the phone. Why bother? The low end machines were comparable to various computers in stock in various store within a half-mile radius.

36 posted on 04/01/2004 2:49:29 PM PST by Paleo Conservative (Do not remove this tag under penalty of law.)
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To: Bobby777
I bought a Gateway right out of school in 1993 -- it was the best machine I've ever owned. Lasted me about seven years before it became functionally obsolete, but I still keep the monitor and keyboard around in case my Dell breaks down (which it has done a couple of times).
37 posted on 04/01/2004 2:49:58 PM PST by Alberta's Child (Alberta -- the TRUE north strong and free.)
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To: Alberta's Child
Did you buy your Gateway at a Radio shack in Alberta?...thats where my mother in law got hers...

38 posted on 04/01/2004 2:52:33 PM PST by MD_Willington_1976
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To: The South Texan
Their EARLIEST computers (486 vintage) were not bad. I bought a 120 MHz Pentium from them and i can't begin to count the ways i was ripped off, from the low performace motherboard (they left out the pipe-line burst cache in the memory and then tried to tell me EDO memory would make up for the increased access times), to the monitor that burned up a year later, to the woofer that burned up a year later, etc etc

i bought the 120MHz based on their reputation from the earlier machines, but they had already started to cut corners, and boy did they cut corners...

whoever convinced them to open stores throughout the US just as the dot-com boom was peaking and heading south was a *real* genius (not)...

good riddance gateway -- i dislike dell *ALMOST* as much but they are much more savvy and will ride things out, but their stuff is so-so IMHO...

39 posted on 04/01/2004 2:53:23 PM PST by chilepepper (The map is not the territory -- Alfred Korzybski)
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To: Oldeconomybuyer
My first computer was a Gateway...way way back in '94 or '95. I loved it. Bought a new one in 2000, and it didn't work right...big big big problems with the CD-R drive. I called several times in the first 2 weeks, and ran into a BRICK WALL. Bad attitude, who-cares-we're-Gateway, and they kept stonewalling me.

So, I called 'em and told them it was coming back. Suddenly, they gave a damn. But it was too late.

I returned the Gateway, and bought a Dell. I love the Dell, and plan to buy another sometime in 2005 or 2006.

40 posted on 04/01/2004 2:53:39 PM PST by Recovering_Democrat (I'm so glad to no longer be associated with the Party of Dependence on Government!)
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To: The South Texan
Too much horizontal expansion into areas where they were weak. First the stores which put them in direct competition with Circuit City and Best Buy, a competition they couldn't win because the others sold software; then they started branching into other electronics (like TVs) thus putting themselves in competition with still more retailers all of whom had better selections and more expertise.

Horizontal expansion works best when you can really leverage, which they couldn't, or when you're expanding into under populated space, which they didn't.
41 posted on 04/01/2004 2:54:10 PM PST by discostu (but this one has 11)
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To: The South Texan
A friend of mine purchased a hign-end Gateway notebook, three months later it lost it's mind and became a boat anchor.
42 posted on 04/01/2004 2:54:19 PM PST by hobson
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To: MD_Willington_1976
LOL. No -- I wasn't living in Alberta back then. I ordered it directly from Gateway and had it delivered.
43 posted on 04/01/2004 2:54:36 PM PST by Alberta's Child (Alberta -- the TRUE north strong and free.)
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To: Paleo Conservative
Yeah, I'd gone into one of their outlets in Virginia a few years back - I thought it was very odd, the way they were conducting business. I guess this article proves it.
44 posted on 04/01/2004 2:54:43 PM PST by Viking2002
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To: tiamat
Walked into one of their brand new stores in '98, bought a top of the line PII 350 for $2300. It soon became apparent that it was filled with the cheapest, no name OEM crap they could find but yet price-marked to the moon to support those B&M overhead and I had to spend another grand to replace everything because went something went wrong, I had to call in to tech support and wait forever. At least doing that, I knew what was in the computer and could keep tech support out of the loop as much as possible.

Eventually, it gave way to a custom-built top of the line Athlon system 4 years later that I put together myself, with components I picked myself, all for $1500. No need for Gateway or Dell or anyone else, really.

45 posted on 04/01/2004 2:55:32 PM PST by Citizen of the Savage Nation
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To: johnfrink
Apple stores, on the other hand, are pretty cool. Very well laid out, staffed with very knowledgeable staff, and overall a very pleasant environment.

My computer guru son bought an 17" Apple Powerbook G4 Titanium and he loves it! He runs Microsoft Virtual PC for the PC side of things and OSx 10.8.2 for the Aplle stuff. Neat laptop!

46 posted on 04/01/2004 2:55:42 PM PST by teletech (Friends don't let friends vote DemocRAT!)
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To: tiamat
Yep. They make such a good product--I mean, it absolutely blows everything else out of the water. And it was brilliant for them to go the retail store route, because once you sit down at an iMac, and see all the cool peripherals, you don't mind paying an extra $300. The iPods are just sick--so far above the other mp3 players out there that it's pathetic.

And there is absolutely no competition between their salespeople (who, I think, are best described as incredibly polite geeks) and the people who troll the aisles at Comp USA or wherever else trying to get you to buy a PC.

Like you said, dangerous--to one's checking account!
47 posted on 04/01/2004 2:56:04 PM PST by johnfrink
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To: chilepepper
I bought a 120 MHz Pentium from them and i can't begin to count the ways i was ripped off, from the low performace motherboard (they left out the pipe-line burst cache in the memory and then tried to tell me EDO memory would make up for the increased access times),

I stopped buying from them when they shipped us a 486-66 with a virus infected hard drive.

48 posted on 04/01/2004 3:00:29 PM PST by Paleo Conservative (Do not remove this tag under penalty of law.)
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To: johnfrink
I agree.

Incredibly polite geeks. Not pushy, though.

I don't have an iPod ( yet) Waiting for when we sell the house, and then i am going to blow some SERIOUS cash!

49 posted on 04/01/2004 3:00:31 PM PST by tiamat ("Just a Bronze-Age Gal, Trapped in a Techno World!")
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To: MineralMan
G. is hedging their bets though. At BB they'll sell you the latest G., in the form of an eMachine (quite a decent piece of work it is, too; much prefer it to HP/Compaq).
50 posted on 04/01/2004 3:01:25 PM PST by Paul_B
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