Feeds

eMachines looks for buyer

Or any other 'strategic' way out of its hole

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

eMachines, the bottom-scraping budget PC maker, is looking to put itself up for sale.

The company puts things a little more cautiously. It says it has asked Credit Suisse First Boston to assist it in "evaluating strategic alternatives, including a possible sale of the company" but nothing may come of this.

In March, eMachines announced it was laying off 16 per cent of its staff, to get expenses into line with falling sales.

It also canned its Net idea to flog ads that customers would see when they logged on, and closed down its Internet business with the loss of 21 jobs.

eMachines, Korean-owned but based in America, sells PCs as cheap as they come, and it built huge market share in 1999 through deals with MSN among others which saw customers receive PCs as part of bundled ISP contracts. Since the end of those deals sales have fallen by half.

The company started in Novemebr 1998, it sold one million machines in its first year, and has sold a further 2.7 million PCs since. In October 2000, the company announced plans to cut PC manufacture by 20 per cent, in advance of the Christmas season. In retrospect, that was probably the wisest call on the market of any US PC maker - even though the move was prompted more by financial exigencies than by an ability to read a crystal ball. It sold 311,000 units in Q4 2000, down 49 percent from the fourth quarter of 1999.

eMachines last year awarded exclusive European representation rights to Dixons Stores Group, and solus retail rights in countries where the electronics retail giant operated. ®

Related Stories

eMachines junks eKeys
eMachines to miss sales targets
PC World slow to advertise actual screen sizes

Intelligent flash storage arrays

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.