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Gateway Revamps Retail Notebook Lineup

Five new laptops range from bare-basics models to desktop PC replacements.

Tom Krazit, IDG News Service

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Gateway today unveiled five notebooks that update the original lineup of notebooks it sells through retail partners.

The new notebooks span several categories of mobile computing, from full-featured desktop-replacement models to lighter units designed for portability. One of the models features Advanced Micro Devices' Athlon 64 Mobile processor, while the others stick with Intel's Celeron M, Pentium M, and Pentium 4 processors.

After closing its chain of retail stores, Gateway has used the retail contacts of its EMachines division to obtain shelf space for its PCs in prominent U.S. retail stores such as Best Buy, CompUSA, and Circuit City Stores. Gateway closed its retail stores when it pulled back from the consumer electronics market after it acquired EMachines.

Sharp increases in retail sales have brought Gateway to the brink of profitability. The Irvine, California, company recorded a net profit in the fourth quarter of 2004--the first time in several quarters--but those results included a $100 million one-time gain. The company still lost money on an operating basis, but thinks it can be profitable in 2005 with the bulk of its restructuring work completed.

Notebook Specs

The new notebooks will help Gateway reach several different types of customers, a Gateway spokeswoman says. The 3018GZ notebook carries a suggested retail price of just under $1000 and includes Intel's Celeron M 350 processor, 512MB of memory, a 60GB hard drive, and a DVD-ROM/CD-RW (CD-rewritable) optical drive. At 5.25 pounds, this system is aimed at users who need a portable PC and who require only basic computing power.

Meanwhile, the 4024GZ is slightly heavier and features a larger display, a DVD+/-RW drive, and a slightly more powerful Celeron M processor for $1049. The 4540GZ is a more powerful mobile unit than the 4024GZ, with Intel's 715 Pentium M processor and an 80GB hard drive for $1249.

The other two notebooks, the 7320GZ and the 7422GX, will not appeal to mobile users: each weighs 8.65 pounds. However, consumers who want a notebook for watching movies or playing games are willing to trade mobility for performance, especially if they plan to take the notebook out of their homes only rarely. Heavy notebooks with desktop features have been very popular among home users over the last few years, although shipments of lighter notebooks are catching up with their heavier counterparts as the price of Intel's Pentium M processor falls.

Intel's desktop Pentium 4 518 processor is the engine for the 7320GZ, which also features a DVD+/-RW drive, 512MB of memory, an 80GB hard drive, and a 15.4-inch wide-screen display. The suggested retail price for that unit is $1199.

The 7422GX features AMD's Mobile Athlon 64 3400+ processor, 1GB of memory, an 80GB hard drive, and the same optical drive and display found on the 7320GZ. It costs $1399.

All five notebooks have built-in 802.11g wireless chips.

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