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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Gateway 2000 Targets Corporate Market

Associated Press

Gateway 2000 Inc., a big mail-order seller of consumer computers, made an aggressive grab for business customers Wednesday with a full line of machines that run networks of smaller computers.

Gateway’s formal unveiling of server computers as well as new business desktops comes amid slowing consumer demand for its flagship PCs. Last week, Gateway warned of disappointing third-quarter profits due to price wars, product delays and troubles from last month’s UPS strike.

Business machines are more profitable than consumer PCs, which Gateway competitors now sell for as little as $1,000 and under. As part of its drive, Gateway recently paid $194 million to buy Advanced Logic Research Inc., a maker of server computers used by businesses.

Gateway, based in North Sioux City, S.D., is taking ALR designs for servers and building them under its own brand for direct sale. The new NS Series servers start at about $2,500.

Gateway also announced a new top-end desktop computer for businesses, the E-5000 model, which starts at $3,600.