Computing - Gateway Returns to Japan
December 07, 2004
After fleeing the Japanese PC market in 2001 due to sluggish sales, Gateway recently announced that it is mounting a comeback with a new product line and marketing strategy.
Starting on December 10, the US-based PC maker plans to sell two notebook and two desktop PC models in Japan. In accordance with the recent reversal of their previous direct sales strategy in the US and Europe, Gateway will also sell its new line of PCs at retail outlets in Japan. It has already secured agreements with major retailers such as Joshin Denki, Ishimaru Denki, Tsukumo, and Nojima. The new desktop models will start at a price of 119, 800 yen (approx. US$1,171; 1 USD = 102.31 JPY) and the 3538JP laptop model with sell for 129,800 yen (US$1,268).
Gateway's return to the Japanese market is likely to further intensify fierce competition among brand-name PC vendors there. A price-cutting war has erupted in recent years as Dell and HP have sought to expand into a market once wholly dominated by Japanese players. Gateway's return to Japan is the company's latest move to reassert itself. Under new management, Gateway has recently taken steps to restructure, outsourcing much of its manufacturing and services, and placing emphasis on cultivating relationships with retailers. Gateway's new sales strategy came about earlier this year as a result of its acquisition of value-line PC vendor eMachines.