EMachines
Defunct brand of low-end PCs
From Wikipedia, the free encyclopedia
eMachines was a brand of economical personal computers. In 2004, it was acquired by Gateway, Inc., which was in turn acquired by Acer Inc. in 2007. The eMachines brand was discontinued in 2013.
 | |
| Product type | Personal computers |
|---|---|
| Owner | Acer Inc. (2007–2013) |
| Country | United States |
| Introduced | September 1998 |
| Discontinued | January 17, 2013 |
| Previous owners | Gateway, Inc. (2004-2007) |
| Company | |
| Founder | Lap Shun Hui |
History
eMachines was founded in September 1998 by Lap Shun Hui as a joint venture of South Korean companies Korea Data Systems and TriGem.[1] The company's first computers, the eTower 266 and 300, were sold at $399 or $499 respectively, not including a monitor.[2]
By March 1999, the company was ranked fourth in U.S. computer sales, with a 9.9% market share.[1]
In August 1999, the company released the eOne, a computer that resembled the iMac, priced at $799, with a $400 rebate for customers who signed a 3-year agreement with CompuServe.[3]
In September 1999, the company announced plans to launch an internet service provider.[4]
The business acquired Free-PC in November 1999, which had previously provided free computers in exchange for advertising.[5][6]
On March 24, 2000, near the peak of the dot-com bubble, the company became a public company via an initial public offering, raising $180 million.[7] By that time, the company had sold 2 million computers, but had lost $84.5 million in the previous year on $815 million in sales and a 4% profit margin. Shares fell 8% in their debut. At that time, major shareholders included AOL with a 6.4% stake and Bill T. Gross with a 12.4% stake.[8]
By May 2001, the stock was trading at 38 cents per share and the company was delisted from the NASDAQ.[9]
In January 2002, Lap Shun Hui acquired the company for $161 million.[10]
In December 2003, the company released the T6000 desktop, the world's first mass-marketed AMD Athlon 64-based system, retailing at US$1,299. The systems were primarily sold through Best Buy stores, but the PCs were also available online.[11]
In January 2004, the company released the M6805 & M6807 notebooks, the first notebook computers based on the AMD Mobile Athlon 64 processor.[12][13][14][15] [independent source needed]
In March 2004, the company was acquired by Gateway Inc. for 50 million shares of Gateway common stock and $30 million cash. Wayne Inouye, CEO of eMachines, became CEO of Gateway, with founder Ted Waitt stepping down.[16]
In October 2007, Acer Inc. acquired Gateway.[17]
On January 17, 2013, the eMachines brand was discontinued.[18]
