eMachines was a brand of economical

personal computer A personal computer (PC) is a multi-purpose microcomputer whose size, capabilities, and price make it feasible for individual use. Personal computers are intended to be operated directly by an end user, rather than by a computer expert or tec ...

s. In 2004, it was acquired by

Gateway, Inc. Gateway, Inc., previously Gateway 2000, is an American computer hardware company. The company developed, manufactured, supported, and marketed a wide range of personal computers, computer monitors, servers, and computer accessories. It was acqui ...

, which was in turn acquired by Acer Inc. in 2007. The eMachines brand was discontinued in 2013.

History

eMachines was founded in September 1998 by Lap Shun Hui as a

joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and economic risk, risks, and shared governance. Companies typically pursue joint ventures for one of four rea ...

of South Korean companies Korea Data Systems and

TriGem TriGem Computer Co., Ltd. (, abbreviated TG, also known as TGSambo), was a South Korean personal computer manufacturer and technology company. Established in 1980, TriGem was the first Korean company dedicated to manufacturing computer systems. ...

. The company sold PCs at prices of $399 or $499, all without a monitor. By March 1999, the company was ranked fourth in U.S. computer sales, with a 9.9% market share. In August 1999, the company released the

eOne Entertainment One Ltd., trading as eOne, is an American-owned Canadian multinational entertainment company. Based in Toronto, Ontario, the company is primarily involved in the acquisition, distribution, and production of films and television s ...

, a computer that resembled the

iMac iMac is a family of all-in-one Mac desktop computers designed and built by Apple Inc. It has been the primary part of Apple's consumer desktop offerings since its debut in August 1998, and has evolved through seven distinct forms. In it ...

, priced at $799, with a $400 rebate for customers who signed a 3-year agreement with CompuServe. In September 1999, the company announced plans to launch an

internet service provider An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise privat ...

. In November 1999, the company acquired Free-PC, which had previously given away free computers in exchange for advertising. In March 2000, at the peak of the

dot-com bubble The dot-com bubble (dot-com boom, tech bubble, or the Internet bubble) was a stock market bubble in the late 1990s, a period of massive growth in the use and adoption of the Internet. Between 1995 and its peak in March 2000, the Nasdaq Compo ...

, the company became a

public company A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( ...

via an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...

, raising $180 million. By that time, the company had sold 2 million computers, but had lost $84.5 million in the previous year on $815 million in sales and a 4%

profit margin Profit margin is a measure of profitability. It is calculated by finding the profit as a percentage of the revenue. \text = = There are 3 types of profit margins: gross profit margin, operating profit margin and net profit margin. * Gross Pro ...

. Shares fell 8% in their debut. At that time, major shareholders included AOL with a 6.4% stake and Bill T. Gross with a 12.4% stake. By May 2001, the stock was trading at 38 cents per share and the company was delisted from the NASDAQ. In January 2002, Lap Shun Hui acquired the company for $161 million. In December 2003, the company released the T6000 desktop, the world's first mass-marketed

AMD Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company based in Santa Clara, California, that develops computer processors and related technologies for business and consumer markets. While it initially manufactur ...

Athlon 64-based system, retailing at US$1,299. The systems were primarily sold through Best Buy stores, but the PCs were also available online. In January 2004, the company was the first to sell notebooks based on the AMD Mobile Athlon 64. In March 2004, the company was acquired by Gateway Inc. for 50 million shares of Gateway common stock and $30 million cash. Wayne Inouye, CEO of eMachines, became CEO of Gateway, replacing founder Ted Waitt. In October 2007, Acer Inc. acquired Gateway. On January 17, 2013, the eMachines brand was discontinued.

References

Acer Inc. Computer companies established in 1998 Defunct computer companies of the United States Defunct companies based in California Defunct computer hardware companies Dot-com bubble {{computer-company-stub