Gateway has already trimmed its operations to the bone

The firm will remodel its 192 shops, and launch a range of up to 15 televisions and probably digital cameras and camcorders.

The plan aims to build on the success of Gateway's 42-inch plasma television, which was launched last November for around $3,000 - hundreds of dollars below competitors.

"This allows us to position ourselves for a much larger, higher-growth market," chief executive Ted Waitt said.

The firm said it aimed to return to profit this year, and was on track to make annual cost savings of some $200m (�125m).

Shrinking share

The plan is the culmination of more than a year's efforts to put Gateway's business on a sound footing.

The core computer business has been battered by competition from Dell and Hewlett-Packard, which have both cut prices in the hunt for market share.

Now, Gateway, which had 9% of the US personal computer market at the end of 2000, has just over 4%.

The firm has shed thousands of jobs, and closed down almost all its overseas operations in an effort to bring costs under control.

But attempts to restructure the business by diversifying into computer services have failed to make an impact.