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MPC Computers Shutting Down

davidphogan74 writes "MPC Computers (formerly Micron's computer division) notified the Idaho Department of Labor in a letter on 12/29/2008 that it would terminate its remaining employees. The company had been operating under the protection of a Chapter 11 bankruptcy since November, after it laid off 200 employees in October. MPC said 147 employees would be terminated immediately and 51 would be retained while the company liquidates its assets. Last year, MPC bought the professional business unit of PC company Gateway, which itself had been bought by Acer earlier that year. MPC had sold business technology hardware to mid-sized business, government agencies, and education organizations since 1991."

31 of 137 comments (clear)

  1. RIP Micron by Gothmolly · · Score: 2, Informative

    Micron always made rock solid, good performing machines. They even had a high-tech name. Anyone know why they failed?

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    1. Re:RIP Micron by Anonymous Coward · · Score: 3, Informative

      They only appealed to an elitist community.

    2. Re:RIP Micron by vbraga · · Score: 4, Funny

      Oh, I bet it's George Bush fault too!

      Just like the lack of coffe in the machine this morning :/

      --
      English is not my first language. Corrections and suggestions are welcome.
    3. Re:RIP Micron by houstonbofh · · Score: 3, Insightful

      I am guessing price. "Cheap" is the only market that is really growing right now. You would see a bigger hit with HP and IBM if they hadn't already addicted everyone to services...

    4. Re:RIP Micron by halivar · · Score: 4, Informative

      MPC made all PC's that had "Micron" written on them. That's because the "M" stood for "Micron."

      "Micron Technology" (the semiconductor manufacturer) created MPC to handle the PC business aspect.

    5. Re:RIP Micron by Calmiche · · Score: 5, Informative

      Living in Boise, ID, maybe I can shed some light on this.

      MPC has been steadily going downhill for a couple of years. I didn't work for MPC, but I had several customers who did. The gossip from them is a tale of outsourcing gone bad. MPC used to assemble PC's here in Idaho. A couple years ago, they outsourced most of the manufacturing overseas. Instead of building a new factory here, they built in China. All went well for awhile, then the quality started to slip. Companies stopped ordering. There wasn't enough money left to bring the manufacturing back to the states. Finally, the high oil prices of last year destroyed the profit margin they were making by outsourcing the manufacturing.

      They have been in a death spiral ever since. They hoped to fix it by declaring Chapter 11 a couple months ago but that obviously didn't work.

      *Disclaimer:
      Please be aware that all my information is third hand and may not reflect other peoples experiences.

    6. Re:RIP Micron by 0100010001010011 · · Score: 4, Funny

      Apple is doing well.

      I Keed. I Keed, I love my MBP.

    7. Re:RIP Micron by RulerOf · · Score: 5, Funny

      Oh, I bet it's George Bush fault too!

      Just like the lack of coffe in the machine this morning :/

      Indeed! Unfortunately, neither your coffee machine nor Micron qualified for bailout money. :(

      --
      Boot Windows, Linux, and ESX over the network for free.
    8. Re:RIP Micron by black6host · · Score: 5, Interesting

      Maybe. For me, the appeal was a rock solid office machine. I still have a Pentium II server I put in place for a business about 10 years ago, running Novell 3.1. They got over 7 years of service from that machine without issue. Sure, had to replace a hard drive but that's to be expected. I booted it up about a month ago to retrieve some data from it and it still runs just fine. They also got 5-7 years out of the desktops. The only reason they were retired is that technology had just progressed so much and Novell didn't have the applications that Windows offered at the server level. I still have these businesses as my clients, in part because I put in solid equipment that lasted for as long as they wanted it. I'm sorry to see Micron go....

    9. Re:RIP Micron by billcopc · · Score: 2, Insightful

      It's not exactly difficult to build PCs that last. There's really just one component you have to not chintz on: the power supply. That's the one part that will fry your system if it's a no-name piece of garbage.

      The fact that other PC vendors' systems fail so often and so brutally is almost always the result of weak unfiltered power supplies and thermal stress. A scary number of brand names build their PCs to boot, not to last. I have seen so much dumb shit while repairing/upgrading even brand new machines, I have to wonder what kind of landed idiot is responsible for prototyping these mass-produced lemons.

      If Micron was smart enough to spend the extra $40 on a quality power supply and an extra cooling fan, great! But how do you position an "unshitty" PC for sales ? Clearly they did not figure it out, and that's why they are exiting the market today.

      --
      -Billco, Fnarg.com
    10. Re:RIP Micron by jjhall · · Score: 4, Informative

      In my opinion the whole spiral started with Joel Kocher. When I started employment at MPC (was called MicronPC.com at the time) in early '00, they had a rock solid product, and were in the midst of transitioning to a PC and Internet hosting company. Kocher introduced a free bare-bones PC with a long-term Internet service contract.

      Kocher was convinced the PC was dead and that hosting was the way to go. Up to that point Micron PC was known as the Cadillac of PCs, using good quality parts, a good non-bloatware system load, etc. Once this piece of cheapest-possible junk was introduced, the reputation of the company, as well as the internal focus on quality went out the window. All of the company effort was focused on expanding the hosting business at the expense of the hardware side of the business.

      After a while Kocher spun off Hostpro and left the PC manufacturing side of the business to die. It was picked up by an investment group and was never able to fully recover. While I can't confirm it, rumor stated that the company could have turned around but the investment company siphoned off every cent of profit rather than re-investing it back into the business for long-term growth. Coupled with leadership that (I feel) were more interested in short-term balance sheets than long term success doomed the company to failure.

      I was laid off in July of '06, and haven't looked back. I made it through more layoffs than I could count and the stress of wondering if I'd have a job every couple of months was horrible. The layoff that finally caught me was more of a relief than a concern. I should have looked for something else far prior to that but I was convinced the company could recover and then I'd be in a good position for advancement.

      The way I see it the company has been floating for the last 6+ years, and someone finally decided to hit the flush handle. I have quite a few friends that were still employed there that have lost their jobs in the last month. Its a tough job market right now and this isn't going to make it any easier.

  2. anybody else read it like me? by hort_wort · · Score: 2, Funny

    TRON strikes again! Eat it MCP! Oh wait...

    Come to think of it, I bet TRON caused a bunch of layoffs too. Gosh, that kinda makes the movie more of a bummer :(

  3. Ex-Gateway customer. by saintlupus · · Score: 2, Informative

    Well, this certainly makes me feel secure about the hundreds and hundreds of Gateway computers we've got at work. I'm sure warranty repair parts will be easily available.

    *cough*

    --saint

  4. Kinda harsh... by rzei · · Score: 4, Funny

    I for one believe that firing the employees in question would be enough, instead of termination. Perhaps it'd even be cheaper choice.

  5. This Explains Things by AMSmith42 · · Score: 2, Insightful

    This explains why my MPC salesperson didn't bug the crap out of me like other salespersons. I faxed in a P.O. in September but never heard from her again. Perhaps she'd been laid off early or quit. I wasn't worried about it because there were more critical items I was dealing with at the time. There's one contact I'll be deleting on Monday after Christmas break.

    1. Re:This Explains Things by snspdaarf · · Score: 3, Interesting

      It could be worse. The salesman for MAD Computer sold us a bunch of systems after the company had shut down. He didn't tell anyone, just continued to sell product on hand.

      --
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  6. Micron Quality by DaMattster · · Score: 2, Interesting

    Micron made some bullet proof laptops. About five years ago, when I worked as a civilian for the Department of the Navy, they gave me one bangin' Micron laptop. My friend had a Micron full tower back in college and the thing was bullet proof. It ran Linux flawlessly. In fact, I was going to purchase one because they are clearly superior to Dell but I they were out of my price range at the time. I guess everyone is now looking at their bottom dollar so quality has lessened. Still a shame, but people would rather pay less than a small amount more. In the three years that I had that laptop, I put it through hell and never once did its hardware fail. It survived rough handling and, an embarrasing slip out of my hand.

  7. Misleading Title is Misleading by kevind23 · · Score: 2, Funny

    Don't scare me! What with all the Zunes freezing, you can't be too careful nowadays... the last thing I need is trusty ol' MPC to crash!

  8. Expected this, did a few of the warrenty repairs by WarlockD · · Score: 2, Interesting

    Unisys had a contract to do MPC computers. I think it was a hold over from the "oh fuck the customer is MAD, send a tech out there!" contract we had with gateway before they bought them.

    There was one case where they sent motherboard after motherboard. (5 in total) to a gateway customer. Looked like someone in shipping kept substituting the wrong board. Though how you could substitute an ATA interface laptop board with with a SATA interface and expect it to work is beyond me.

    But that was their laptops, there servers were very solid and support was GREAT. Always got on the phone with an experienced techs. I just think they shouldn't of bought the Gateway stuff.

    MPC didn't have a big foot print though. Its hard to be the little guy in a bit Dell/HP world. Hate to see them go.

  9. MPC's Downfall Makes Me Smile by quangdog · · Score: 3, Interesting

    I, for one, happen to be rather pleased that MPC bit the dust: We hired one of their former employees back in November, and he has proven to be a great addition to our (currently growing, amazingly) company.

    1. Re:MPC's Downfall Makes Me Smile by ChrisGilliard · · Score: 3, Interesting

      This is one reason the computer industry really helps keep the employment numbers high. Unlike the auto industry, employees can much more easily go to a new company and contribute right off the bat. So, when you read about these kind of layoffs just think that it's a good thing because the employees will end up at a place that is setup better in order for them to succeed.

      --
      No Sigs!
  10. Gateway was the death of them by citking · · Score: 4, Interesting

    We used MPC in a higher-ed setting quite consistently over Dell since they had better deals, more configuration options, and USA tech support.

    Once they purchased Gateway however the service was horrible. Installing XP on a RAID-enabled SATA controller required the RAID drivers which Gateway/MPC techs refused to send to us. It took 10 minutes for them to find the system in the database and over an hour for one of their techs to scour their website for the proper driver.

    MPC's only original 2 flaws were their oddly-interfaced website and their billing. You know how you get configuration errors if you have more cards than PCI slots? Well, their "default" configurations would always have a configuration error right off the bat. Things like that, plus poorly-updated tracking info made it useless.

    And then their billing...I moved to a different department and therefore had a new purchasing card issued to me (and the old one canceled). 3 Months after a PC purchase I received a threatening e-mail from their accounts Receivable stating that the payment on the system was denied and that we'd better pay up now or go to court. A quick e-mail and a call with the new card number resolved things quickly, but waiting 3 months to bill for a system is a little odd.

    MPC had a good thing going right up to that point (for the most part anyhow). The Gateway curse continues.

    --
    "This food is problematic."
  11. Yup, cheap by Tau+Neutrino · · Score: 4, Interesting

    And that's why Apple is doing so well. Oh, wait...

    --
    Lemmings are silly; dinosaurs are extinct.
    1. Re:Yup, cheap by foniksonik · · Score: 2, Informative

      Take a look at their PROFIT share and you'll change your tune.

      --
      A fool throws a stone into a well and a thousand sages can not remove it.
    2. Re:Yup, cheap by jcr · · Score: 3, Insightful

      Ten percent of the whole computer market? Yeah, I'd call that doing well.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
  12. Bad Business Manners! by ClaraBow · · Score: 3, Informative

    They didn't even notify their customers. We had ordered hundreds of PCs (all-in-ones) for a new South Tower at our hospital and they didn't even have the courtesy to give is a head up! Just Plain rude!

  13. In the grand scheme of things.... by sdnoob · · Score: 2, Insightful

    this is like Michael Dell swatting a gnat.

    MPC had been essentially non-player in the PC business for years, even after it's acquisition of the business unit of Gateway.

  14. Not bad product, but really bad service by michael_allison · · Score: 2, Interesting

    We purchased some Gateway M275 tablets a couple of years ago and were pretty happy with them, but then MPC took over the business from Gateway and everything went down hill...the service we received was terrible and when we were looking at new tablets earlier this year, we were promised a lot by MPC and they didn't deliver on any of it. We had an order placed with them in August and they choose not to tell us they were out of business until two weeks ago...

  15. My recollections of Micron by AmericanGladiator · · Score: 4, Interesting

    I worked for Micron for a while. It has a somewhat confusing history. I was there in the mid-late 90's when it was called Micron Electronics. It was tethered to Micron Tech at that time (the memory maker). Micron Tech in hindsight did well to spin off Micron Electronics (MPC) in 2001.

    Micron Electronics had previously acquired ZEOS computers along with a small groups of engineers from a little town in Minnesota that had expertise in chip design, specifically north bridge chips. It was these engineers that I worked with.

    It was no secret that their strategy was to create performance/gaming PCs. They did that by going up against the Intels, VIAs, and SiSs in creating the fastest northbridge ICs for a given CPU. They also designed their own motherboards and extended the commercially-obtained BIOS to take advantage of features in their chipsets.

    Even though they were based in Nampa, Idaho, they had significant operations in Minnesota (in fact all design was in Roseville, MN). Nampa had a larger workforce, but it was primarily production.

    I'm somewhat sad that they folded, though I'll admit I haven't followed them for a while. My thoughts are that Dell/Alienware and the DIY market took away the high-end customers. Micron (Electronics) attempted to get into servers with the purchase of NetFrame in the 1997 timeframe. I don't think they ever got any real traction with those products, though.

    R.I.P. ZEOS/Micron Electronics/Micron PC

  16. Their tech support sucked by Nimey · · Score: 2, Interesting

    I work in higher education. We've had a few MPC-Gateways (my area is mainly Dell, thank goodness, but other techs are not so lucky), and nearly every time we've needed support on a Gateway box, it's been terrible. I've had an incompatible drive sent to me, twice. They have refused to send me restore DVDs for in-warranty machines, when the restore partition failed[1]. It can be difficult to find the correct drivers on their website.

    And now, we've got this then-expensive 22" widescreen monitor that went bad a couple months ago and is putatively still under warranty. Except now that they are bankrupt and dissolving, there is no warranty. We've got the money that he already bought a replacement, but that's a regular burr beneath my saddle that we paid for something which we'll never get.

    [1] A problem because of said machines needing XP Tablet Edition, and us not having a site license nor media for that version.

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  17. Re:Not completely familiar with MPCs warranty stuf by jalefkowit · · Score: 2, Informative

    I feel bad for the employees at the company that were effectively jobless days after christmas, with no warning of their impending 'layoff'. I find their letter justifying why the couldn't give 60 days notice unsettling. They're admitting they screwed up, and i'm sure their former employees are comforted by this fact, right? I hope they ban together and demand those 60 days paid, as is required by law.

    Indeed, and now there is even a template now on how to do just that:

    A day after dozens of protesting workers walked out of the Republic Windows & Doors plant with their demands met, they said they hope their triumph will inspire others nationwide to take similar stands against employers if need be.

    "Sometimes people are scared to say something to big companies," said Ricardo Caceres, who spent his first night in his own bed after sleeping on a flatbed truck in the plant during the six day sit-in. "But we stood up - opened everyone's eyes." ...

    About 200 of the 240 laid-off workers occupied the doors and windows manufacturer last week, demanding severance and accrued vacation pay after Republic gave them just three days notice before closing the plant down...

    Wednesday's agreement means the laid-off workers will each get about $7,000 in accrued vacation pay and eight weeks of salary. Each will also get two months paid health care.