EMachines
| Company type | Subsidiary |
|---|---|
| Industry | Personal computers |
| Founded | September 1998 |
| Founder | Lap Shun Hui |
| Fate | Brand retired |
| Successor | Gateway, Inc. |
| Headquarters | United States |
| Products | Personal computers |
| Parent | Acer Inc. |
eMachines represented a line of budget-friendly personal computers. In 2004, the company was purchased by Gateway, Inc., which itself was later acquired by Acer Inc. in 2007. The eMachines brand ceased operations in 2013.
History
Established in September 1998 by Lap Shun Hui, eMachines emerged as a joint venture between South Korean firms Korea Data Systems and TriGem. Its initial product offerings included the eTower 266 and 300 models, priced at $399 and $499 respectively, not including monitors.
By March 1999, eMachines had secured the position of the fourth-largest PC seller in the United States, holding a 9.9% market share. In August of the same year, the company introduced the eOne, a computer resembling the iMac design, priced at $799 with a $400 rebate contingent upon a three-year CompuServe subscription.
In September 1999, eMachines revealed intentions to start an internet service provider and subsequently acquired Free-PC in November—a business that offered complimentary computers supported by advertising revenue.
During the height of the dot-com bubble on March 24, 2000, eMachines launched its initial public offering (IPO), raising $180 million. At that point, it had sold two million units but reported an $84.5 million loss on $815 million in revenue, reflecting a 4% profit margin. The stock price declined by 8% on its first day of trading; notable shareholders included AOL with 6.4% and Bill T. Gross holding 12.4%.
By May 2001, shares plummeted to 38 cents each, leading to delisting from the NASDAQ. Founder Lap Shun Hui repurchased the firm for $161 million in January 2002.
In December 2003, eMachines launched the T6000 desktop model, marking the first widely available system utilizing the AMD Athlon 64 processor. This unit was priced at $1,299 and primarily retailed through Best Buy and online outlets.
January 2004 saw the release of the M6805 and M6807 laptop models equipped with the AMD Mobile Athlon 64 processor.
Gateway Inc. acquired eMachines in March 2004 in exchange for 50 million Gateway shares plus $30 million in cash. Following this acquisition, eMachines CEO Wayne Inouye assumed leadership of Gateway as founder Ted Waitt resigned.
In October 2007, Acer Inc. completed its acquisition of Gateway.
The eMachines brand was formally retired on January 17, 2013.