"Gateway is basically using our direct model to continue to pursue the consumer electronics industry. We're able to hit value based price points in the market place by using the direct model in a way that is unlike others. And so what we did with plasma, where we were able to hit unprecedented price points with our plasma line, we're following up with the digital camera line."
Gateway is selling a 2 megapixel model for 130 dollars and a 4 megapixel camera with a 3X optical zoom... for 200. The company's sales expectations...
"There's no question the digital photography market is a fast growing market, growing well over twenty percent per year. Gateway is really after two primary consumers. Both those consumers who have not converted to digital cameras yet as well as those that have already bought digital cameras but are looking for better values and are looking to move up."
As it has with TVs... Gateway is working with manufacturing partners on the cameras... so it has not had to invest in its own manufacturing facilities. And it hopes consumers who come into its stores to look at the cameras... .will wind up looking at PCs as well. Bloomberg Boot Camp, I'm Fred Fishkin.