{"id":404,"date":"2007-09-24T07:00:21","date_gmt":"2007-09-24T15:00:21","guid":{"rendered":"http:\/\/www.formtek.com\/blog\/?p=404"},"modified":"2007-09-24T07:00:21","modified_gmt":"2007-09-24T15:00:21","slug":"technology-gateway-shareholders-arent-smiling","status":"publish","type":"post","link":"https:\/\/formtek.com\/blog\/technology-gateway-shareholders-arent-smiling\/","title":{"rendered":"Technology:  Gateway Shareholders Aren&#039;t Smiling"},"content":{"rendered":"<p>Taiwan-based <a target=\"_blank\" title=\"Acer\" href=\"http:\/\/global.acer.com\/\">Acer<\/a>&#8216;s proposed deal to <a target=\"_blank\" title=\"Acer to Acquire Gateway\" href=\"http:\/\/www.pcmag.com\/article2\/0,1895,2176033,00.asp\">acquire <\/a>Gateway for $710 million is making news.  In the deal, Acer would acquire the Gateway, eMachines and Packard Bell computer brands.  The deal would make Acer the third largest PC maker in the world.<\/p>\n<p>It&#8217;s a complicated deal and it is uncertain because of possible antitrust <a target=\"_blank\" title=\"Anti-trust scrutiny\" href=\"http:\/\/www.eweek.com\/article2\/0,1895,2176206,00.asp\">scrutiny <\/a>and a fierce <a target=\"_blank\" title=\"Acer backlash\" href=\"http:\/\/www.eweek.com\/article2\/0,1895,2182420,00.asp\">backlash <\/a>against the deal coming from Gateway shareholders after hearing the news.  Not to mention fears by some about what continuing <a target=\"_blank\" title=\"Acer globalization by buying Gateway\" href=\"http:\/\/www.informationweek.com\/blog\/main\/archives\/2007\/08\/dont_fear_the_a.html\">globalization<\/a>  will bring mean for the US economy.<\/p>\n<p>Whether the deal goes through or not, it&#8217;s interesting to see Acer propose a high-profile merger after years of pursuing organic growth.<br \/>\nAcer was co-founded in 1976 by Stan Shih.  Acer and Shih helped Taiwan move higher up the chain from a country of low-paying mass computer productions.  While at Acer, Shih came up for an explanation for why Taiwan needed to change.  He called it the Stan Shih smile curve.<\/p>\n<div style=\"text-align: center\"><img decoding=\"async\" alt=\"Shih Smile Curve\" id=\"image403\" src=\"http:\/\/formtek.com\/blog\/wp-content\/uploads\/2007\/09\/shih.gif.png\" \/><\/div>\n<div style=\"text-align: center\"><a target=\"_blank\" title=\"Smile Curve\" href=\"http:\/\/globaleconomicanalysis.blogspot.com\/2007\/04\/knowledge-based-economy.html\">http:\/\/globaleconomicanalysis.blogspot.com\/2007\/04\/knowledge-based-economy.html <\/a><\/div>\n<div>The smile curve shows that manufacturing adds the smallest contribution to the value of products.  It explains why companies like Apple have been so successful and profitable by concentrating on high-value components of the the production chain, like Branding and Design.<\/p>\n<p>Likewise, the most successful software vendors, like Microsoft, have emphasized brand, distribution and marketing to become successful.<\/p>\n<\/div>\n<p>\n<div class=\"lightsocial_container\"><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Ftechnology-gateway-shareholders-arent-smiling%2F&amp;title=\" target=\"_blank\"><img decoding=\"async\" class=\"lightsocial_img\" src=\"https:\/\/formtek.com\/blog\/wp-content\/plugins\/light-social\/digg.png\" alt=\"Digg This\" title=\"Digg This\" \/><\/a><\/div><div class=\"lightsocial_element\"><a class=\"lightsocial_a\" href=\"http:\/\/www.reddit.com\/submit?url=https%3A%2F%2Fformtek.com%2Fblog%2Ftechnology-gateway-shareholders-arent-smiling%2F&amp;title=\" target=\"_blank\"><img 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The deal would make Acer the third largest PC maker in the world.<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/formtek.com\/blog\/technology-gateway-shareholders-arent-smiling\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[],"class_list":["post-404","post","type-post","status-publish","format-standard","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/comments?post=404"}],"version-history":[{"count":0,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/posts\/404\/revisions"}],"wp:attachment":[{"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/media?parent=404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/categories?post=404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/formtek.com\/blog\/wp-json\/wp\/v2\/tags?post=404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}