EMachines Moving Into Laptops

Irvine-based EMachines Inc., which has become the No. 3 desktop computer manufacturer in less than a year by selling bargain-basement personal computers, said it is expanding into the laptop market.

Citing the exodus this year of personal computer manufacturers from the retail store market, including IBM Corp. and Packard Bell, EMachines officials said the company wanted to fill the vacuum.

The company had previously confined itself to the sub-$600 computer market, but in October introduced an $899 system aimed at power users. The company’s laptop computer, which will hit the shelves next month, is priced at $999.

“We will never go to full pricing,” Chief Executive Stephen Dukker said. “But we definitely will be moving up.”

The company, which in August filed for an initial public stock offering, had gross margins of 3.6% during the first half of this year, far below market leader Compaq Computer Corp.’s 22.6%.

The higher-end computers will also help EMachines attract customers with higher incomes and more computer experience, Dukker said.