Feeds

Gateway CEO hints at future Amiga role

Internet + low-cost computers = Gateway strategy = Amiga?

  • alert
  • submit to reddit

Security and trust: The backbone of doing business over the internet

Gateway CEO Ted Waitt yesterday outlined the direct vendor's increasing focus on the Internet. And, reading between the lines a little, it looks like he's finally figured out what to do with Amiga. Gateway's problem is, as Waitt put it at the company's AGM yesterday, that "the days of everyone buying a $2500 PC are over". In other words, as PCs get cheaper, margins get eroded and Gateway doesn't make as much money as it used to. Waitt's solution is to focus on higher margin service business. That, plus software, accounts for eight per cent of the company's revenues -- Waitt said he wants to raise that figure to 20 per cent. Training and purchase financing are the two key services the company has its eye on expanding. Both are particularly suited to the small business sector, which is the Gateway's fastest-growing customer segment, said Waitt. And, following Compaq's lead last year with the acquisition of Alta Vista and Shopping.com, Waitt said Gateway will look to buy Internet companies to expand its business base. Yet cheap hardware is still part of the programme. Gateway president and COO Jeff Weitzen said the company's mainstay will continue to be home computers. And Waitt said later: "We feel the technology now allows for us to develop very low cost products and we are going to definitely play in that market... Right now we'll be at $499 or $599 or $399 -- we're still working that out." Start pushing much beyond that point and you move into the kind of low-cost system Amiga appears to be developing. In addition to maintaining OS development for existing Amiga machines, the company is, by all accounts, working on slimline home machines not dissimilar to the kind of thing Nintendo and Sony are developing, and Sega releasing -- games machines that also provide more general purpose functionality such as Net access, home networking and digital camera connectivity. Machines like these are essentially an evolution of the games console into something resembling the home computers of the early 80s, stuff like the Sinclair Spectrum, Tandy Color Computer, the Commodore Vic-20 and, ironically, the original Amigas. If Gateway is thinking in these terms, then Amiga boss Jim Collas' public lashing of his parent company (and former employer) last month, in which ha slammed Gateway for being far too PC-centric and largely ignoring its subsidiary, may well have had its desired effect. ®

New hybrid storage solutions

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.