Emachines looked like another casualty of the PC business, until Wayne Inouye turned it around.
In fact, about 15 percent of Emachines' desktop sales are already business sales, says CEO Dukker.
Emachines will market its new desktop business systems through retailers, direct sales, and value-added resellers, Dukker says.
However, its 2004 acquisition of discount PC maker eMachines gave Gateway entry into the retail sales channel.
Apple promptly sued the firm in America and Japan for trademark infringement (eMachines is switching to a less flagrant clone).
Go to Wal-Mart's Web site and you'll find cut-rate brands such as eMachines and Everex competing with low-end machines from Hewlett-Packard.
Emachines will provide detailed specifications upon release, but the entire notebooks family will be available with Celeron and mobile Pentium III processors.
Emachines hasn't had much success selling more expensive consumer systems, so targeting business buyers with less expensive PCs makes sense, Baker says.
Small businesses don't have that luxury, but Emachines aims to offer them PCs that are configured and priced similarly to what other vendors provide to big buyers, he says.
Go to Wal-Mart's Web site and you'll find cut-rate brands such as eMachines and Everex competing with low-end machines from Hewlett-Packard (nyse: HPQ - news - people ).
"When you have a company that subsidizes each sale with its own cash and the company has significant competition from eMachines and NetZero, enormous losses and little prospect for near-term or intermediate-term profitability, no one should be surprised that the offering didnt do well, " says Charles.
EMachines' bottom-of-the-heap machine comes with a 1.1 gigaherz Intel (nasdaq: INTC - news - people ) Celeron processor, 128 megabytes of SDRAM, a 20-gigabyte hard drive and a line of Microsoft (nyse: MSFT - news - people ) software already installed.
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