Gateway goes for low-end PC sales in govt.

Gateway Inc.'s acquisition of eMachines Inc. could slash the government's desktop client price tag to $500 or $600, predicted Jocelyn Attal, Gateway's public-sector executive vice president.

'Gateway's average unit value in the government market is around $1,600,' she said. 'We haven't participated in government business at the low end.'

EMachines, in contrast, has not pursued the government market and sells low-cost consumer systems.

The combined companies will also promote connecting large-screen monitors to networks of servers, desktops and notebook PCs, which allows dynamic messaging to user communities about fast-breaking events. The eMachines acquisition must receive Justice Department approval.

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