February 28, 2002
Is Gateway on the road to recovery?
Gateway hosted its annual financial analyst conference yesterday in Poway, California. While Gateway expects to lose money until 2003 excluding special charges.
In January Gateway announced a series of restructuring changes and those processes are now complete.
Gateway's strengths, according to Gateway, are: its brand, Direct model, Multi-channel strategy and
Technology solutions business
In addition to growing its PC business, it is also "its digital solutions capabilities through a number of planned retail pilot tests and trials designed to establish Gateway as the leading destination for digital solutions for consumers and small businesses"
With Sony, Casio and so many other companies already leading or 100% focused on digital solutions - might it not be wise for Gateway to enter this already crowded field.
Gateway could enter the market cheaply - by private labeling digital items and simply re-selling them to its PC customers though. But a separate branding campaign and ads for Gateway digital cameras and the like is NOT a smart move.
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