There’s been quite a bit of “PC” related news in the past few weeks. Gateway’s sales are not well at all, as reported in CNet and therefore it’s cutting 2,250 jobs, which is 15 percent of its workforce and closing down 19 underperforming stores – 10 in California alone. There’s a total of 296 stores including the 19 to be closed down.
Gateway’s going to try to improve sales by cutting prices on its PCs. That sounds like a losing battle – there’s only so much you can cut without going out of business.
To save more money it’s also going to close operations in four locations.
CNet had another other interesting tid bit that E-machines is now moving to an inventory-less model. This is not quite like Dell’s model of just in time manufacturing – where a customer orders a product and DELL makes a PC just for them. But instead emachines will now build PC’s to fill orders from retailers and to stock its online store.
This new strategy will help it turn a profit. But the downside of this, is that if a retailer runs out of PC’s, or Emachines Web site runs out then the retailer or emachines must wait for a new shipment of PC’s to come from Asia!
The other interesting note is that Best Buy is going to start making its own PCs, under its own brand and selling them in stores as well as other brands.