Gateway marrying the truth in China

Slogan into China not fall, Gateway put a Chinese company sold itself.

The morning of August 15, Beijing, China World Hotel function rooms, Gateway CEO 鍩冨痉绉戝皵鏇?(Ed Coleman) face the press, very firm, said, Gateway will not sell. His current trip to Beijing to August 16 with China's largest IT distributor Digital China signed a strategic cooperation agreement in Beijing, and announced that Gateway's formal entry into the Chinese market. But 12 days later, opened a theater screen, it was announced 710 million U.S. dollars Acer bought Gateway.

"Cow" pasture dilemma

22 years ago, on a farm in Idaho which, Ted Waitt in his grandmother under the guarantee, loan 10 thousand U.S. dollars, by hiring a computer and three business plan, founder of Gateway. Before 1991, Gateway has been called Gateway2000. 1991, in order to commemorate the fortune of the farm year, this in the "bullpen" in the birth of the PC manufacturers, choose their own identity as a cow spotted. In 1997, Gateway in the NASDAQ market, to become the third largest PC vendor.

But Gateway is getting worse the past two years. Since 2004, the company has acquired the computer maker eMachines, Gateway has been in a hard struggle. Analysis of data from the IDC to see, in the first quarter of 2007, Gateway's net loss of 858 million, from net sales of 1.08 billion U.S. dollars last year dropped to one billion U.S. dollars; Gateway's gross profit margin from last year's 7.3 % down to 4.9%. Although Gateway second-quarter profit net profit of 1.9 million U.S. dollars, but the company's operating income has dropped from 919 million U.S. dollars last year fell to 841 million U.S. dollars. Although the current Gateway the third largest U.S. personal computer market, but HP and Dell from the top two is quite different. According to statistics, currently the company's market share of only 5.6%, Apple has been caught up, tied for third in the U.S. market, while Dell over the same period was 28.4%, HP 23.6%, far higher than the Gateway's market share rate. What is more worrying is that, in order to compete with HP and Dell, Gateway had to take lower price strategy, but even in the competitive strategy of low prices, its PC market share in the United States or falling, market share rate from 6.5% in the second quarter last year to 5.6% in the second quarter of this year, down 7.1%.

Gateway reason for the consistent failure in the U.S. market, simply because this market highly saturated PC. After 20 years of development, PC has been a lucrative industry from becoming a low-profit industries, enterprises can be profitable only the scale of operation. 3 years ago, IBM PC sector because of high operating costs and profits too low, had to be sold to Lenovo. Today, more than half of HP and Dell share of possession, Apple, Toshiba and some other second-tier makers advancing case, Gateway's "ranch" a little bit of shrinking. Although Gateway is also through to the closure of stores nationwide, and began such as Wal-Mart, Best Buy, Circuit City and retailers like CompUSA PC, in order to compete with Dell and HP, but a series of initiatives did not achieve significant results.

U.S. market share decline, so that Gateway began to seek other "ranch." Gateway has to enter the following

Mexico and Europe. According to Coleman's statement, Gateway has become Mexico's third largest PC vendor in the desktop and notebook market were to occupy 26% and 17% of the market. In Europe, Gateway has entered the local market, the top four. In seven years, Gateway has been testing water in China, but was agitated, and had to leave. But this return to China, Gateway's intention is confusing people. Because of this "farm" also is over-saturated. In addition to the original old rival Hewlett-Packard and Dell, local associations have done to this market the extent of digging three feet, not to mention there is Founder, with the side of such a master. The Chinese market, "cow" More and more will snatch.

But Gateway was declared the second time into China. This time, unlike the last time they did come to find their own "farm", but looking for a cowboy - Digital China, China's largest IT channel distributor to help themselves to snatch.

However, in cooperation with Digital China announced the time, Gateway only in Shanghai and set up a no principal's office. More people to doubt that Digital China is used as part of Toshiba agency personnel and the support for the Gateway.

In fact, the domestic IT sector Gateway into China's prospects are not good, Gateway announced it was suspected that many media into China, but simply to show the scene acquired and drama. Previously, Lenovo plans to acquire Gateway for PC makers in Europe holding Packard Bell, Gateway and thus become the biggest potential buyers.

Into China in order to be sold on

After 12 days, all really want to Pak. Aug. 27, Acer announced the official price of 710 million U.S. dollars to buy Gateway company.

If this time two months after the push, people will not doubt that before the Gateway and Digital China cooperation. This also indicates that high-profile announcement in the Gateway and Digital China cooperation, the Acer and Gateway that they have finalized the acquisition of the interest, Gateway into China's position is only Acer's mandate.

Acquisition of a company because the negotiation is not completed within a month. Clearly in the face of the Chinese media inquiries, Gateway's CEO Coleman "lied."

This "lie" is in line with the requirements of the new owner. From the Gateway itself, the purpose of entering the Chinese market is only one, that is acquired in the future when the weight increase. In the Gateway to China before, the industry said that the retail model based on the high cost of Gateway, and the number of employees too. For the Gateway, it does not retreat, because shareholders want Gateway to be acquired. From Goldman's analysis, if the purchase price per share at 1.50 to 2.50 U.S. dollars, Gateway will definitely be sold.

The Acer final 1.9 U.S. dollars per share to buy Gateway, the market value of its bid almost double than the latter. Acer, Gateway has also become a sub-brand.

This is also aware of the earlier high-profile Gateway into China's intentions, only Gateway, Acer, Digital tripartite co-star of a play it. Of course, the three parties are divided.

For Acer, it is a key acquisition in Acer significant career journey, Acer will acquire Gateway to expand its global operations, in order to consolidate its position in the PC market.

This, Acer took the hands from the Lenovo acquisition of the European computer maker Packard Bell priority. Gateway Packard Bell because the company has the right of priority purchase, acquisition, Gateway, Acer successfully check the expansion of competitors.

For Gateway, the association may be sold is the best choice, but Lenovo does not need, but not out of the Acer Lenovo prices, although the association wants Packard Bell.

Gateway Acer themselves driven into the pastoral field, but it does not mean that it can have a "ranch." "Farm" still needs its own Quduo, but not easy. Coleman will be Gateway's market positioning in the main attack high-end market, but the current situation of China's PC market has been showing saturation. In these markets, not to mention China's Lenovo, Founder, with the long side of such market among themselves, that is, HP and Gateway fellow Americans as early as 20 years ago, Dell entered the market, is also already have their own comparative stable market share, it can be said in this market, Gateway did not survive.

Moreover, the Chinese consumers have already been recognized computer brand is the case, Gateway This is the first "Flower Cow" can be recognized in a day.

Or can cause a chain reaction

But his drive into the Gateway to Acer's grazing fields and allows the industry's other "big bull" who secretly nervous. After the acquisition of Gateway, Acer than Lenovo, leap into the world's third-largest PC maker. The industry believes that Acer would attack directly at the association currently ranked third in the world, or to change the global PC market, the competitive landscape.

The deal is the Acer brand 30 years a major milestone. Acer acquisition of Gateway, it can strengthen Acer's position in the U.S. market, combined with Acer in Europe and Asia, favorable market position, Acer now be able to sit tight in the global PC market, the third seat. If Acer does not carry out this acquisition, the market competition will be "marginalized." Head of the Acer, the company chairman JT Wang seems low-key and honest approach was not accounted for in the competition market opportunities.

With the Acer and Gateway's acquisition started, the world's top four PC makers are divided into two groups. According to IDC, data analysis, market share of 19.3% and 15.2% of HP and Dell as the first group, the market share of less than 10% of Lenovo and Acer have formed the second group. Between the two groups have a more significant market share and size of the gap. Meanwhile, the four companies and the rest of the world the gap between brand computers are further widening.

Therefore, the industry believe that the global PC pattern is the evolution of the oligopoly of the times.







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The national rate OF 99.5% administrative villages



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The national rate of 99.5% administrative villages

Reported in the newspaper exceeded 2006 goal of the project villages, the country has 24 provinces, autonomous regions and municipalities to achieve all the objectives of administrative villages in the phone based on the Ministry of Information Industry recently issued a call to carry out works in 2007 villages notice beating "villages" campaign of drums, required the telecommunications industry around the strategic goal of building a new countryside ride on the momentum to continue fighting hard for one year to the end of the national rate of villages reached 99.5%, in the development of rural communications, rural information technology to achieve new results, to a new height.

This year our project villages have three major tasks: the country has been striving to achieve during the year of basic telephone villages with power supply for the 3296 opening of the administrative villages without a telephone call, by the end of the phone percentage of administrative villages in the country reached 99.5%; actively promote the natural villages engineering, research projects developed villages to the villages of the overall objectives and implementation of extension programs, step by step to start the natural villages engineering work; a positive and pragmatic construction of rural information, and promote all types of information such as the Internet platform to the rural extension, and further strengthen the promotion of information technology applications in rural areas, villages and peasant households do information work.

2007 administrative villages have not yet opened the phone more difficult natural conditions, construction villages difficult than ever. Ministry of Information Industry in maintaining "Fenpianbaogan" based on the same general principle of administrative villages this year a reasonable allocation of project tasks. Ministry of Information Industry asked the telecom industry work together to lay the villages tough fight: requirements related departments of the Authority and relevant communication well organized, and vigorously promote and actively relying on local governments to ensure that this region is not power the phone off the work of the successful completion of the administrative villages. Requirements related to the telecommunications companies to continue to carry forward the indomitable fighting spirit, increase enforcement, take effective measures and effective technical means, to lay a good tough fight; request the relevant telecommunications company based take on the role of local enterprises to increase the support efforts in the capital, technology and performance assessment and so strengthen their commitment to villages around the project tasks and support grass-roots enterprises tilt to ensure the smooth implementation of the project and the successful completion of the annual tasks.

The circular urges all relevant communications and Building Authority to seize the new countryside, the rural information technology as an opportunity to actively strengthen communication and consultation with the local government, for various preferential policies and financial and other support. Ministry of Information Industry will further promote the establishment of universal service fund, universal service subsidies with easy to use real money, and gradually establish and improve long-term protection of the rural communication system.

This year, China has to speed up rural information service platform and information, promotion Yingyongfangmian Ye will step forward: the year of broadband will cover the basic realization of Dongbudiqu Dao town, eastern and central regions can access administrative Cun, towns west of basic dial-up Internet access with conditions; At the same time, will enhance the content development and the rural grass-roots information site building, promotion of township information station + village information service point model + rural information workers. SCDMA, and in rural areas using other effective, economical new technologies, new applications, to promote the rural characteristics of information service model, to explore suitable for remote rural areas, new means of communication and information services.

It is reported that China's telecom industry projects for villages and rural villages of information technology related programs have been implemented, natural villages of specific projects during the implementation of the program also will be introduced.






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