Gateway gobbles eMachines
Gateway Inc. plans to acquire eMachines Inc. for about US$200 million to increase its shrinking PC revenue while it pursues the consumer electronics market, the companies announced recently. The deal will provide Gateway with the revenue generated by eMachines’ strength among consumers in retail channels, the companies said. EMachines sells low-cost PCs that have made inroads with U.S. consumers, who purchased enough PCs from the company to lift it into fourth place ahead of Gateway in the fourth quarter, according to IDC.
The worldwide router market will increase 6 per cent over the next five years, while optical transport and mobility infrastructure won’t see significant growth until 2005, according to Dell’Oro Group Inc. In a set of five-year forecasts, Dell’Oro said the router market will grow from US$6.3 billion in 2003 to US$8.6 billion in 2008. The second half of 2003 was the “turning point” for the market, which had experienced declining sales for several years, Dell’Oro said. Telecom service providers and businesses are planning to increase investment in their router networks this year, and Dell’Oro expects this trend to continue for the next five years.
IBM Corp.’s server and semiconductor groups are joining forces in hopes that by working together the two will help each other improve their product lines, an IBM spokesman said. The new IBM Technology and Systems Group is a combination of the Technology Group headed by John Kelly, senior vice-president and group executive, and the Systems Group, headed by William Zeitler, also a senior vice-president and group executive. The two men will equally share responsibility for the new division, overseeing their respective areas.