`Avalanche of Demand' From PC Resellers and Users for New $399 and $499 Entry-Level Systems Hits emachines.FREMONT, Calif.--(BUSINESS WIRE)--Nov. 11, 1998-- Avid Interest Across All National and Regional Market Segments for Affordable, Full-Featured PCs Leads to Expanded Distribution Channel emachines, Inc.(tm) today announced it is expanding its initial distribution channel to include major national and regional partners. The strongly-backed start-up Start-up The earliest stage of a new business venture. is experiencing high demand for its eTower 266 and eTower 300 personal computers, which at $399 and $499, respectively, plus $100 for a monitor, are the first current production, full-featured systems at those price points in the PC market. "Since mid-September, when we first announced plans to roll-out several PCs at or around the $499 price point, we've been inundated in·un·date tr.v. in·un·dat·ed, in·un·dat·ing, in·un·dates 1. To cover with water, especially floodwaters. 2. with inquiries from resellers and end-users," stated Stephen A. Dukker, emachines' President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Each has avid interest in reselling or owning what are the highest-value and lowest-cost PCs on the market." Expanded Channel Partners Toward meeting the demand, emachines has expanded distribution beyond its initial channel partners, Best Buy and Office Depot Office Depot (NYSE: ODP) is one of the world's leading suppliers of office products and services. The Company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, , to include several national and regional resellers. On the national level it has added: Costco and MicroCenter; Regional resellers added include: Future Shop for Canada and the northwestern United States Noun 1. northwestern United States - the northwestern region of the United States Northwest western United States, West - the region of the United States lying to the west of the Mississippi River ; J&R Music and Nationwide Consumer Electronics in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ; and BrandsMartUSA for the southeastern U.S. Between mid-November, when the eTower systems go on sale, and the end of this year's winter holiday buying season, emachines expects to sell virtually all of its Q4 `98 capacity of nearly 200,000 units. "Additional channel partners for national retailing and reselling over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the will be announced shortly," Dukker noted. Emachines' 200,000 units this Q4 should place it as the fifth largest supplier of personal computers to the retail channel, in its first quarter of business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . Moving into the first quarter of 1999, he added, "emachines' distribution channel will be expanded and move further into large mass merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. , consumer electronics retailing, and other computer reselling enterprises." Capacity Expansion Planned Also in next year's first quarter, production of PCs and monitors will be increased beyond 300,000 units, "a minimum 50% increase above our current capacity," stated Dukker. Prior to assuming the presidency of emachines, he most recently was senior vice president, merchandising, at Computer City, and previously in a similar position at CompUSA. "We are looking to expand the PC market by focusing exclusively on affordable price points and unique technology applications," said Dukker. He said emachines intends "to build a major PC brand identified with quality, innovation and market leadership." In so doing, he added, "we will turbocharge tur·bo·charge tr.v. tur·bo·charged, tur·bo·charg·ing, tur·bo·charg·es 1. To equip with a turbocharger. 2. market expansion, making PCs affordable for the next 20% (17 million households) of the market likely to purchase PCs and dramatically accelerate the rate of 2nd/3rd computer in the home purchases." About emachines Founded in August, emachines is a joint venture between Korean PC maker TriGem Computer, Inc. (51%) and monitors maker Korea Data Systems (49%), which had revenues of $1.75B and $1B, respectively, in 1997. With the backing of these manufacturing powerhouses and the channel expertise of its management, emachines intends to become a major computer-centric consumer electronics brand. |
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