eMachines

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eMachines
Brand
Industry Personal computers
Fate Discontinued
Founded September 1998; 20 years ago (1998-09)
Defunct January 2013; 5 years ago (2013-01)
Headquarters Irvine, California
Production output
1-2 million computers per year
Owner Gateway, Inc. (2004-2007)
Acer Inc. (2007–2013)
Number of employees
135
Website www.emachines.com

eMachines was a brand of low-end personal computers. In 2004, it was acquired by Gateway, Inc., which was in turn acquired by Acer Inc. in 2007. The eMachines brand was discontinued in 2013.

History[edit]

eMachines was founded in September 1998 by Lap Shun Hui as a joint venture of South Korean companies Korea Data Systems and TriGem.[1] The company sold PCs at prices of $399 or $499, all without a monitor.[2]

By March 1999, the company was ranked 4th in U.S. computer sales, with a 9.9% market share.[1]

In August 1999, the company released the eOne, a computer that resembled the iMac, priced at $799, with a $400 rebate for customers who signed a 3-year agreement with CompuServe.[3]

In September 1999, the company announced plans to launch an internet service provider.[4]

In November 1999, the company acquired Free-PC, which had previously given away free computers in exchange for advertising.[5]

In March 2000, at the peak of the dot-com bubble, the company became a public company via an initial public offering, raising $180 million. By that time, the company had sold 2 million computers, but had lost $84.5 million in the previous year on $815 million in sales and a 4% profit margin. Shares fell 8% in their debut. At that time, major shareholders included AOL with a 6.4% stake and Bill T. Gross with a 12.4% stake.[6]

By May 2001, the stock was trading at 38 cents per share and the company was delisted from the NASDAQ.[7]

In January 2002, Lap Shun Hui, the founder of the company, acquired the company for $161 million.[8]

In December 2003, the company released the T6000 desktop, the world's first mass-marketed AMD Athlon 64-based system, retailing at US$1,299. The systems were primarily sold through Best Buy stores, but the PCs were also available online.[9]

In January 2004, the company was the first to sell notebooks based on the AMD Mobile Athlon 64.[10]

In March 2004, the company was acquired by Gateway Inc. for 50 million shares of Gateway common stock and $30 million cash. Wayne Inouye, CEO of eMachines, became CEO of Gateway, replacing founder Ted Waitt.[11]

In October 2007, Acer Inc. acquired Gateway.[12]

In January 2013, the eMachines brand was discontinued.[13]

References[edit]