eMachines
eMachines was a value-oriented personal-computer brand founded in 1998 and discontinued in 2013.
Last updated August 26, 2026
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Overview
eMachines was an American personal-computer brand established in September 1998 by Lap Shun Hui as a joint venture involving the South Korean computer companies Korea Data Systems and TriGem. The business entered the market with aggressively priced desktop systems intended to make home computing accessible to a broader consumer audience. Its first products, the eTower 266 and eTower 300, were sold for $399 and $499 respectively, excluding a monitor. This low-price positioning helped the company gain rapid visibility in the United States and made it a notable participant in the late-1990s expansion of consumer PC ownership. The company grew quickly during the dot-com era. By March 1999, it was reported as the fourth-largest computer seller in the United States, with a 9.9 percent market share. In August of that year, eMachines introduced the eOne, an all-in-one computer whose industrial design resembled Apple's iMac. The product was priced at $799 and could be obtained with a substantial rebate when purchased alongside a three-year CompuServe agreement, reflecting the period's tendency to combine hardware sales with Internet-service subscriptions. eMachines also announced plans for its own Internet service provider and acquired Free-PC in November 1999. Free-PC had previously distributed computers at no charge in exchange for advertising exposure, extending eMachines' interest in alternative hardware and service-based business models. On March 24, 2000, eMachines became a public company through an initial public offering during the peak of the technology-market boom. The offering raised $180 million. Despite having sold approximately two million computers by that point, the company had reported a loss of $84.5 million in the preceding year on $815 million in sales, illustrating the difficulty of sustaining very low hardware prices while funding rapid expansion. Its shares declined on the first day of trading, and the stock later fell to 38 cents per share. eMachines was delisted from NASDAQ in May 2001. Lap Shun Hui acquired the company in January 2002 for $161 million, returning eMachines to private ownership. The brand subsequently continued to compete through inexpensive desktop and notebook computers, while also pursuing product differentiation through early adoption of AMD 64-bit processor technology. In December 2003, it released the T6000 desktop, described as the first mass-marketed system based on the AMD Athlon 64 processor. In January 2004, the company introduced the M6805 and M6807 notebooks, identified as the first notebook computers using AMD's Mobile Athlon 64 processor. These products broadened the brand beyond entry-level specifications, although eMachines remained primarily associated with affordable consumer PCs. Gateway, Inc. acquired eMachines in March 2004 in a transaction involving Gateway shares and cash. Wayne Inouye, then eMachines' chief executive, became Gateway's chief executive, while Gateway founder Ted Waitt stepped down from that role. eMachines continued as a brand within Gateway rather than operating as an independent public company. Acer Inc. acquired Gateway in October 2007, placing eMachines within Acer's broader computer business and brand portfolio. The eMachines name was ultimately discontinued on January 17, 2013. Its historical significance lies in its early mass-market push toward very low-cost personal computers, its use of hardware-service bundles and advertising-supported models, and its role in the consolidation of the PC industry through Gateway and Acer.
History
eMachines was founded in September 1998 by Lap Shun Hui as a joint venture involving Korea Data Systems and TriGem, two South Korean computer companies. The new brand focused on economical personal computers for the consumer market. Its initial eTower 266 and eTower 300 desktops were priced at $399 and $499 respectively, although monitors were sold separately. The pricing helped eMachines establish a strong early presence in the United States, where consumer demand for home computers was expanding rapidly. By March 1999, eMachines had become the fourth-largest computer seller in the United States according to the cited historical account, with a 9.9 percent market share. The company introduced the eOne all-in-one computer in August 1999. Its appearance recalled Apple's iMac, while its commercial offer connected the computer to a three-year CompuServe agreement and a large rebate. In September, eMachines announced plans to launch an Internet service provider. It also acquired Free-PC in November 1999; that company had experimented with distributing free computers supported by advertising. The company entered the public markets on March 24, 2000, through an initial public offering that raised $180 million. The offering occurred during the technology-stock boom, even though eMachines had recorded a substantial previous-year loss. The company had sold around two million computers but had lost $84.5 million on $815 million in sales in the preceding year. The stock fell 8 percent on its first trading day and declined further during the market downturn. By May 2001, the shares were trading at 38 cents and eMachines was delisted from NASDAQ. Lap Shun Hui acquired eMachines for $161 million in January 2002. The business continued to sell affordable personal computers and developed products using newer AMD processor platforms. The T6000 desktop, introduced in December 2003, was described as the first mass-marketed computer based on AMD's Athlon 64 processor. In January 2004, eMachines released the M6805 and M6807 notebooks, described as the first notebooks built around AMD's Mobile Athlon 64 processor. These products gave the brand a stronger technology story while preserving its value-oriented identity. Gateway acquired eMachines in March 2004 in a transaction consisting of Gateway common stock and $30 million in cash. Wayne Inouye, eMachines' chief executive, became Gateway's chief executive, and Gateway founder Ted Waitt stepped down. eMachines thereafter operated within Gateway's brand structure. Acer acquired Gateway in October 2007, making eMachines part of Acer's multinational computer group. The eMachines brand was discontinued on January 17, 2013. The brand's history reflects both the opportunities and limitations of low-margin PC retailing: it achieved rapid market penetration through low prices, experimented with Internet-related subsidies and services, adopted emerging processor technology, and ultimately became part of a larger industry consolidation.
- 2013
Brand discontinued
[1]Acer discontinues the eMachines brand on January 17.
- 2007
Acer acquires Gateway
[1]Acer acquires Gateway in October, placing eMachines under Acer ownership.
- 2004
Gateway acquisition
[1]Gateway acquires eMachines in March, integrating the brand into its computer business.
- 2003
T6000 desktop introduced
[1]eMachines releases the T6000, described as the first mass-marketed AMD Athlon 64-based system.
- 2002
Lap Shun Hui reacquires the company
[1]Hui acquires eMachines for $161 million in January.
- 2001
NASDAQ delisting
[1]The company's shares fall to 38 cents and eMachines is delisted from NASDAQ in May.
- 2000
Initial public offering
[1]eMachines becomes publicly traded on March 24 and raises $180 million in its IPO.
- 1999
Rapid rise in U.S. computer sales
[1]By March, eMachines is reported as the fourth-largest computer seller in the United States, with a 9.9 percent market share.
- 1999
eOne launches
[1]The company introduces the eOne all-in-one computer with a pricing and rebate structure linked to a CompuServe agreement.
- 1999
Free-PC acquisition
[1]eMachines acquires Free-PC, an advertising-supported free-computer venture.
Products and positioning
Affordable, mass-market personal computing for value-conscious consumers, with emphasis on low purchase prices and broad retail availability.
Desktop computer · 1998
eTower 266
One of eMachines' first desktop systems, the eTower 266 represented the brand's low-cost entry into the consumer PC market. It was sold for $399 excluding a monitor and helped establish the company's value-oriented proposition at launch.
Desktop computer · 1998
eTower 300
The eTower 300 was an early eMachines desktop positioned above the eTower 266 in the initial product range. Its $499 price, also excluding a monitor, reflected the company's strategy of offering basic home-computing hardware at an accessible price.
All-in-one computer · 1999
eOne
Introduced in 1999, the eOne was an all-in-one personal computer with a design visually resembling Apple's iMac. It was priced at $799 and was marketed with a substantial rebate for customers accepting a three-year CompuServe agreement, linking hardware economics with Internet-service acquisition.
Desktop computer · 2003
T6000
The T6000 was a desktop system released in December 2003 and described as the first mass-marketed computer based on AMD's Athlon 64 processor. It retailed for $1,299 and was sold primarily through Best Buy, with online availability as well.
Notebook computer · 2004
M6805
The M6805 was one of two notebooks introduced by eMachines in January 2004 using AMD's Mobile Athlon 64 processor. It extended the brand's early adoption of 64-bit AMD technology into the portable-computer segment.
Notebook computer · 2004
M6807
Released alongside the M6805 in January 2004, the M6807 was an eMachines notebook based on AMD's Mobile Athlon 64 processor. It represented the company's effort to offer newer processor technology within a consumer-oriented product portfolio.
Marketing campaigns
- 1999eOne and CompuServe rebate offer
United States
The eOne was offered with a large rebate for customers who entered into a three-year CompuServe agreement. The offer tied a low-priced computer purchase to an Internet-service commitment, a commercial model associated with the dot-com era.
Outcome. The offer formed part of eMachines' effort to reduce the effective hardware price and build a service-related revenue relationship.
- 1999Free-PC advertising-supported computer model
United States
Through its acquisition of Free-PC, eMachines incorporated a model in which computers had previously been provided without charge in exchange for advertising exposure.
Outcome. The acquisition expanded eMachines' exploration of advertising-supported and service-linked approaches to consumer computer distribution.
Brand decisions
2013
Discontinue the eMachines brandStrategyBackground
Following Gateway's acquisition by Acer in 2007, eMachines was one of several brands within a consolidated computer portfolio.
Action taken
The eMachines name was discontinued on January 17, 2013.
Aftermath
eMachines ceased to operate as an active consumer PC brand.
2004
Gateway acquisition of eMachinesM&ABackground
eMachines remained a recognized value-oriented PC brand but was operating in a highly competitive and consolidating computer market.
Action taken
Gateway acquired eMachines for 50 million Gateway common shares and $30 million in cash.
Aftermath
The brand became part of Gateway's portfolio, and eMachines chief executive Wayne Inouye became Gateway's chief executive.
Cash component. $30 million cash plus 50 million Gateway common shares (March 2004)
2002
Return to private ownershipOtherBackground
After the share-price collapse and NASDAQ delisting, eMachines was no longer operating as a successful public-market company.
Action taken
Lap Shun Hui acquired the company for $161 million in January 2002.
Aftermath
eMachines continued operating as a private computer brand and later pursued new AMD-based desktop and notebook products.
Acquisition consideration. $161 million (January 2002)
2000
Proceed with an initial public offeringOtherBackground
eMachines had achieved substantial unit sales and market visibility but had also incurred a large previous-year loss while pursuing low-cost expansion.
Action taken
The company went public on March 24, 2000, raising $180 million.
Aftermath
The shares fell 8 percent on the first trading day, later declined to 38 cents, and the company was delisted from NASDAQ in May 2001.
IPO proceeds. $180 million raised (March 24, 2000)
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