Emachines, which has been credited with bringing already cheap computers to new price lows with its $399 systems, today filed with the Securities and Exchange Commission to raise money by selling a stake in the company to the public.
Emachines, formed about a year ago as a joint venture between South Korean PC maker TriGem and display maker Korean Data Systems, has jumped into the upper echelon of PC makers in its first year of existence. When released last year, Emachines first computers were priced at $599, defining the bottom of the market, price-wise.
Like a chain reaction, many major PC makers subsequently lowered prices on their computers, and this year Internet service providers began offering computers for free to customers who agreed to three-year service contracts. Currently, Emachines offers computers for as low as $399.
The cheap PC company has enjoyed enormous popularity among consumers, selling the third highest number of computers through the retail channel this June, according to market research firm PC Data. Last month, Emachines introduced an all-in-one computer, the Microsoft Windows-based eOne, which is similar to Apple's iMac in its design and priced at $1,155.
Apple followed the release of the eOne with a lawsuit claiming trademark infringement, which may be a possible detraction for potential investors. In addition, the company faces increased competition on the low-end from major PC makers who are investigating subsidy schemes to allow even lower price points.
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