EMachines
Encyclopedia
eMachines is a brand of entry level PCs
, based in Irvine, California
. eMachines employed about 135 employees and sold between 1 to 2 million computers each year before its purchase on January 30, 2004, by rival Gateway Computers
. Gateway was purchased by Acer in October 2007, and eMachines is still used as a name brand for low-cost PCs.
n monitor maker Korea Data Systems (KDS), Korean computer manufacturer TriGem, and various other investors. The company announced PC models at prices of $299, $399, $499, and $599, all without a monitor. At the time, few PCs sold for less than $699, and $999 was a more common price point for entry-level PCs. The first units shipped in November of the same year.
eMachines PCs quickly became common in retail stores and touched off a price war involving Compaq
, Hewlett-Packard
(HP), IBM
, and Packard Bell
. eMachines PCs were frequently offered with large rebate
s, provided the consumer signed a long-term contract with an internet service provider
, driving down the price further.
In March 2000, hoping to further cash in on the dot-com boom, eMachines filed an Initial Public Offering
with its share price set at $9. But with thin profit margins and declining sales, the company quickly started losing money and received a threat of being delisted by NASDAQ
in late December 2000. Its stock price, which had peaked at $10, had fallen as low as 14 cents. The company went private in December 2001.
In December 2003, eMachines released the T6000 desktop, the world's first mass-marketed AMD Athlon 64
-based system, retailing at US$1,150. The systems were primarily sold through Best Buy
stores, but the PCs were also available online. eMachines were also the first company to sell notebooks based on the AMD Mobile Athlon 64, with the launch of its M6000 series in January 2004.
In July 2004, eMachines began to shake the perception that their computers were of poor quality when PC Magazine
reported:
eMachines was acquired by Gateway, Inc. in March 2004 for $262 million in cash and shares. Under the deal, Wayne Inouye
, CEO of eMachines, became CEO of Gateway, replacing founder Ted Waitt
. It remains a stand-alone brand that is sold through retailers, catalog and online merchandisers. Gateway itself was purchased by Acer in October 2007.
In June 2011 eMachines released BIOS update version 1.09 for the netbook model eM350 which after flashing the BIOS caused the machines to permanently stop functioning (i.e., version 1.09 "bricked"/permanently damaged any eM350 it was installed on). The failure occurred on all eM350 netbooks on which it was loaded. eMachines subsequently withdrew BIOS version 1.09 from its website, thus admitting the mistake.
eMachines currently makes Netbooks, Desktop PCs and Notebook PCs.
Personal computer
A personal computer is any general-purpose computer whose size, capabilities, and original sales price make it useful for individuals, and which is intended to be operated directly by an end-user with no intervening computer operator...
, based in Irvine, California
Irvine, California
Irvine is a suburban incorporated city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28, 1971, the city has a population of 212,375 as of the 2010 census. However, the California...
. eMachines employed about 135 employees and sold between 1 to 2 million computers each year before its purchase on January 30, 2004, by rival Gateway Computers
Gateway, Inc.
Gateway Computer Corporation, is a computer hardware company headquartered in Irvine, California, USA which develops, manufactures, supports, and markets a wide range of personal computers, computer monitors, servers, and computer accessories...
. Gateway was purchased by Acer in October 2007, and eMachines is still used as a name brand for low-cost PCs.
History
eMachines was founded in the United States in 1998, backed by KoreaKorea
Korea ) is an East Asian geographic region that is currently divided into two separate sovereign states — North Korea and South Korea. Located on the Korean Peninsula, Korea is bordered by the People's Republic of China to the northwest, Russia to the northeast, and is separated from Japan to the...
n monitor maker Korea Data Systems (KDS), Korean computer manufacturer TriGem, and various other investors. The company announced PC models at prices of $299, $399, $499, and $599, all without a monitor. At the time, few PCs sold for less than $699, and $999 was a more common price point for entry-level PCs. The first units shipped in November of the same year.
eMachines PCs quickly became common in retail stores and touched off a price war involving Compaq
Compaq
Compaq Computer Corporation is a personal computer company founded in 1982. Once the largest supplier of personal computing systems in the world, Compaq existed as an independent corporation until 2002, when it was acquired for US$25 billion by Hewlett-Packard....
, Hewlett-Packard
Hewlett-Packard
Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, USA that provides products, technologies, softwares, solutions and services to consumers, small- and medium-sized businesses and large enterprises, including...
(HP), IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
, and Packard Bell
Packard Bell
Packard Bell is a Dutch computer manufacturer and a subsidiary of Acer. The name was previously used by Packard Bell, an American radio manufacturer founded in 1926. In 1986, Israeli investors bought the name for a newly formed personal computer manufacturer. Originally the company produced...
. eMachines PCs were frequently offered with large rebate
Rebate
Rebate can refer to:* Rebate or rabbet, a woodworking term for a groove* Film rebate, the term for the border around photographic film- Money :* Rebate , a type of sales promotion used in marketing* Tax rebate, a reduction in taxation demanded...
s, provided the consumer signed a long-term contract with an internet service provider
Internet service provider
An Internet service provider is a company that provides access to the Internet. Access ISPs directly connect customers to the Internet using copper wires, wireless or fiber-optic connections. Hosting ISPs lease server space for smaller businesses and host other people servers...
, driving down the price further.
In March 2000, hoping to further cash in on the dot-com boom, eMachines filed an Initial Public Offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
with its share price set at $9. But with thin profit margins and declining sales, the company quickly started losing money and received a threat of being delisted by NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
in late December 2000. Its stock price, which had peaked at $10, had fallen as low as 14 cents. The company went private in December 2001.
In December 2003, eMachines released the T6000 desktop, the world's first mass-marketed AMD Athlon 64
Athlon 64
The Athlon 64 is an eighth-generation, AMD64-architecture microprocessor produced by AMD, released on September 23, 2003. It is the third processor to bear the name Athlon, and the immediate successor to the Athlon XP...
-based system, retailing at US$1,150. The systems were primarily sold through Best Buy
Best Buy
Best Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...
stores, but the PCs were also available online. eMachines were also the first company to sell notebooks based on the AMD Mobile Athlon 64, with the launch of its M6000 series in January 2004.
In July 2004, eMachines began to shake the perception that their computers were of poor quality when PC Magazine
PC Magazine
PC Magazine is a computer magazine published by Ziff Davis Publishing Holdings Inc. A print edition was published from 1982 to January 2009...
reported:
Among systems less than a year old, eMachines users report the fewest serious problems. eMachines' low-cost PCs are less likely to need repairs than systems from any other vendor. Whereas only 9 percent of eMachines desktops less than a year old needed repairs, according to readers, the rates of comparably new systems from Dell and Gateway needing repairs were 11 and 15 percent, respectively. Only 1 percent of all eMachines systems needed to be replaced.
eMachines was acquired by Gateway, Inc. in March 2004 for $262 million in cash and shares. Under the deal, Wayne Inouye
Wayne Inouye
Wayne Inouye formerly served as Gateway's president & CEO. Inouye announced his departure from Gateway on February 9, 2006.-Biography:...
, CEO of eMachines, became CEO of Gateway, replacing founder Ted Waitt
Ted Waitt
Theodore "Ted" Waitt is an American billionaire who was a co-founder of Gateway, Inc.- Biography :Waitt was born and raised in Sioux City, Iowa and attended the University of Iowa. Waitt and Mike Hammond started Gateway 2000 on September 5, 1985 with a $10,000 loan secured by Waitt's grandmother...
. It remains a stand-alone brand that is sold through retailers, catalog and online merchandisers. Gateway itself was purchased by Acer in October 2007.
In June 2011 eMachines released BIOS update version 1.09 for the netbook model eM350 which after flashing the BIOS caused the machines to permanently stop functioning (i.e., version 1.09 "bricked"/permanently damaged any eM350 it was installed on). The failure occurred on all eM350 netbooks on which it was loaded. eMachines subsequently withdrew BIOS version 1.09 from its website, thus admitting the mistake.
eMachines currently makes Netbooks, Desktop PCs and Notebook PCs.