Gateway Sets Up Shop in China

Chinese consumers can now find PCs in Gateway Inc.'s trademark black and white Holstein cow boxes throughout the nation.

The U.S. computer vendor on Thursday announced the availability of its laptop and desktop PCs, as well as displays, in China.

The company teamed up with Digital China Inc. for its first foray into the middle kingdom. Digital China was once part of the Legend Group Ltd., which split into Digital China and Lenovo Group Ltd., the world's third largest PC vendor and a Gateway rival.

Digital China has sole distribution rights on Gateway products in China and will also take care of customer service and support.

Gateway gear can already be found in malls and retail stores throughout China, Gateway said, including Best Buy Co. Inc.'s flagship Shanghai store.

It's the latest move by Gateway to expand sales internationally following a drop in its PC shipments in the U.S.

Last month Gateway landed a deal with Tesco PLC to sell computers through the British retailer's stores in Eastern Europe. Tesco already sells Gateway PCs at some of its U.K. retail stores.

Gateway has seen a decline in its U.S. business. Its shipments for the second quarter fell to 965,000 PCs, from 1.04 million during the same quarter in 2006, according to statistics from IDC.

Gateway's products in China will include the latest PC technologies, including Intel Corp.'s Centrino Duo mobile processor and Microsoft Corp.'s Windows Vista Home Premium, the company said.