IDC analyst Logan Ringland said Gateway ranked ninth in terms of PC sales at the end of 2000, behind Dell, IBM, Compaq, HP, Acer, Toshiba, Apple and Packard Bell. He said the Australian operations were turning over in excess of $100 million a year.
The problem, in his opinion, was that Australia got dragged down with the vendor's global failure. He said Gateway's model was not as streamlined as fellow direct PC vendor Dell and it restricted itself by only focusing on the consumer and SME markets. "You can't be a huge vendor if you limit your market," he said.
Ringland said the gap in the market is more likely to be filled by a direct seller like Dell than a reseller. Most Internet sales, he believes, will go to Dell or IBM because of their extensive direct-marketing campaigns. Ringland believes in-store sales are more likely to go to a brand-name reseller, such as Harvey Norman, than an independent reseller.
He also expects one of the large PC vendors to come to an arrangement to fill the void in Telstra's retail shops, which currently carry Gateway stock.