Gateway Calls It Quits on Flat Panels

There is one less retailer of flat-panel sets among us, not that many consumers would probably notice-which was the problem to begin with. Computer maker Gateway has quietly abandoned its efforts to sell plasma and LCD sets with its branding in its own stores, and will re-focus its efforts on selling what it knows better--PCs.

Following problems managing its chain of outlets at the retail level, Gateway was forced to close its stores in the past couple of years. These were the same stores that featured the company's flat-screen products--which often got decent reviews, especially for price, but never established the Gateway brand as an electronics retailer for anything other than their signature computers.

According to published reports, however, Gateway's PC ventures are doing well. During the second quarter of 2005, it reportedly moved up to number three in PC shipments in the United States Its now-defunct television line began with much sound and fury during the 2002 holiday season when it rolled out a 42-inch plasma (non-HD) set for about $3,000, which cost only about half as much as most other plasma-addressed sets at the time.