Gateway prepares to dump its international operations
The PC-maker looks ready to decide whether or not it can afford to maintain its badly-performing international operations, which includes the Middle East.
The rumours that have plagued Gateway’s worldwide operations— namely, that the PC maker's foreign markets have been performing woefully— seem to have some basis, with recent confirmation that the company will next week make a decision on whether or not to pull the plug on its international operations.
The company has recently chosen a new strategy focused on selling PCs, software, accessories and training to small businesses, but there have been doubts as to whether this move would work outside of the US.
“Gateway will decide on what action, if any, is necessary [by September 10th],” said spokesman Mike Buchanan. “It may take a little longer…hopefully it will take less. If the company decides that the overseas markets can’t achieve the goal of being profitable, it might mean significant restructuring or even withdrawal from that particular market.”
International sales accounted for just 12 per cent of the company’s $1.5billion global sales revenue during the second quarter. The foreign markets at risk include the Middle East, along with Asia, Europe, Africa and Latin America.