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July 25, 2008 3:21 PM PDT

Gateway ends direct PC sales

by Erica Ogg

Gateway.com no longer sells Gateway PCs.

The company announced Friday that channel partners and retail outlets, both online and brick-and-mortar, are the only way to get the Gateway brand now. In a statement, company officials said it was to fit Gateway into parent company Acer's model, which has always been heavily dependent on indirect sales.

Gateway PCs(Credit: Gateway)

Gateway was one of the original success stories when it came to selling PCs directly to consumers, though its business model underwent several significant makeovers before it was eventually acquired by Acer in August.

Heavy reliance on direct PC sales has fallen out of favor in the industry. The PC maker that famously made its fortune from the same model was Dell, which also ditched direct-to-consumers-only sales last year.

Gateway products are still available at Best Buy, Circuit City, CompUSA, Costco, HSN, Newegg, Tiger Direct, Office Depot, OfficeMax, and Wal-Mart.

Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur. E-mail Erica.
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by Genghis288 July 28, 2008 6:09 AM PDT
I actually find this kind of sad. I remember purchasing my first Gateway in 1993 for about $6000+ after reading numerous magazine reviews and much research. Dell wasn't even in the running for my purchase. I still have several Gateways that are 3-4 years old which continue to run after much use and abuse. I have 2 Dells that are about 4 years old, sitting in the basement unused beacuse they have a proprietary a motherboard and power supply. I was always able to replace any part of of a Gateway. Oh well... Good luck Gateway. Wish you the best.
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by CyberMario July 28, 2008 6:56 AM PDT
hope gateway's quallity improves after this....i had bad experience with this brand
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by Renegade Knight July 28, 2008 7:06 AM PDT
At least I allready lost my money on the takeover and can't loose any more to this stupid decision. Heck they refused to give me a nice stock certificate that said "Gateway" too boot. Too bad. It would have been the only good thing to come out of the Acer deal.
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