Gateway Planning New Notebook Line

During the company’s conference call to discuss third quarter financial results, Acer president Gianfranco Lanci said the newly-acquired computer maker Gateway will launch a new complete line of notebook computers during the first quarter of 2008 in an effort to rejuvenate its business. According to Lanci, Gateway sells mainly desktop systems in the United States, and needs to better address the faster-growing notebook market segment. However, Gateways’s product lineup won’t be changing before the first quarter, since the companies still have to complete their integration, then work on getting new products into retail and distribution channels.

Acer completed its acquisition of Gateway last week. Lanci also indicated he expects Gateway’s restructuring and integration into Acer will be complete by March of 2008, and that the new company will continue to sell products under the existing Acer, Gateway, eMachines, and Packard-Bell brands. Acer plans to offer multiple brands in most market regions where it sells PCs, and may develop a new separate brand to be used for unique or unusual products. The Acer brand has a significant presence in the Asia Pacific market, while Gateway and eMachines are well-known in North America and Packard-Bell has mainly been visible in Europe for the last several years.

Acer expects the acquisition of Gateway (and with it, Packard Bell) will create synergies and cost savings, Acer has already raised its prediction of how much money it will save from $150 million to $200 million, and may still take the number higher. The company also expects to benefit from improved volume discount deals with component manufacturers. "When we have asked component suppliers for volume discounts, so far we have not encountered a single rejection," Lanci said.

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