Gateway may exit New Zealand following company review

Gateway says it has yet to decide whether or not it will pull out of the region, despite coming in with only a 2% market share in New Zealand in IDC Research's latest PC sales figures.

Gateway says it has yet to decide whether or not it will pull out of the region, despite coming in with only a 2% market share in New Zealand in research company IDC's latest PC sales figures.

A Gateway Australia spokesman says the founding CEO of Gateway announced Gateway is reviewing all of its operations outside North America. He says the review should only take 30 days although it may be up to three months before a decision is made.

"Gateway's global goal is to be growing and profitable in every market in which we compete." He says if Gateway can't achieve that goal it could mean withdrawal from that market. He doesn't rule out Gateway pulling out of either Australia or New Zealand but stresses that at this time no decision has been made.

"The operative word here is 'plan' and it all depends on how good the plan is."

Gateway New Zealand began operation with the purchase of PC Direct in 1998 for an estimated $7 million. Since then the operation has been downsized and has repeatedly slipped in the market share ratings. PC Direct peaked in 1996 at third overall PC sales in IDC's survey - Gateway ranked seventh last year and is 10th this year.

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