Rod Sherwood, executive vice president and chief financial officer, said that in the fourth quarter 2002, non-PC products accounted for 17 percent of Gateways product mix, and that he expects that will grow throughout 2003. The movement away from simply selling PCs partially contributed to Gateway PC sales dropping to 506,000 for the quarter, down 22 percent from the first quarter 2002. Still, Gateway plans to bring its PC business back to profitability as well, Waitt said. One move will be to roll out low-end, lower cost PC products, he said.Gateway also cut expenses, closing 80 of its 272 Gateway Country Stores and cutting about 1,900 jobs, or about 17 percent of its workforce. Company officials hope to cut about $125 million in expenses this year. "Were going to do what it takes to get this business profitable and stay there," he said. Check out eWEEKs Earnings Roundup for up-to-the-minute coverage of the industrys quarterly reports.
"Entry-level PCs are part of our overall strategy," he said.