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Gateway snaps up number one consumer PC maker

eMachines finds rich uncle

US PC maker Gateway has completed its buy-up of eMachines - the UK's biggest seller of consumer desktop computers. That makes Gateway the eighth-largest PC vendor in the world.

Gateway, which famously quit the UK market back in 2001, now has a medium-sized foot in Britain's retail door. eMachines' cheap low-end systems sell exclusively through Dixons Store Group and are now placed fifth in terms of total shipments, behind HP, Dell, NEC and Time Group, according to analyst IDC.

Gateway predicts that it will return to profitability in 2005, thanks to the sales growth and cost savings it expects to receive under the buy.

Gateway's purchase of eMachines reflects a renewed focus on the company's PC business after making an aggressive push into the consumer electronics market in the US.


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