D. Plen, a little optimism from the boys at GTW HQ:
Gateway Seeks to Boost Web Access Customers by 200,000 a Qtr
San Francisco, Sept. 30 (Bloomberg) -- Gateway Inc., the No. 2 direct seller of personal computers, is looking to boost sales and profit by adding 200,000 subscribers to its Internet access service each quarter, Chief Financial Officer John Todd said.
Gateway was the No. 11 service provider at the end of the second quarter with more than 400,000 subscribers, Todd said. The San Diego-based company sells its Internet service to users who purchase its computers and sometimes sells long-term access contracts together with PCs.
Gateway is trying to boost sales of non-PC devices and services to increase revenue even as the average PC price plummets. Gateway also has concentrated on sales of software, devices such as printers and scanners, and financing plans.
``There's no reason we shouldn't become a significant (Internet service provider) in the near future,' Todd said at a San Francisco investment conference sponsored by Banc of America Securities.
Gateway Chief Executive Ted Waitt has said the company would consider acquiring a service provider.
Todd said he isn't worried about price competition among service providers because Gateway has much lower marketing costs than its rivals.
The company also may expand its efforts in providing Web services for subscribers to its Internet service. Gateway currently offers a co-branded Web service with Internet directory Yahoo! Inc.
``You'll see a next-step evolution in our portal strategy,' Todd said. ``We want to own the customer.'
Gateway is also looking to boost sales of so-called ``after market' products such as consulting services for schools and small businesses.
Gateway hasn't seen any negative effects from a recent massive earthquake in Taiwan, where many computer components are produced, Todd said. The company's factory making notebook computers is running at full capacity, he said.
The company doesn't expect to face problems buying components, though prices could rise, Todd said.
Sep/30/1999 19:59
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:o)
Drew |
