Acer to double PC shipments in 2005

Jan 19, 2005 Ι Industry In-Focus Ι Electronics and Computers Ι By Ben, CENS
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Taipei, Jan. 19, 2005 (CENS)--Thanks to its success in direct sales and the continued growth of the global market, Acer Inc., the world's fifth-largest vendor of personal computers, will challenge sales of 10 million units this year, double last year's level.

With the substantial growth in sales, Acer will challenge the No.4 position in the world's PC market. To that end, the company will seek a new contract manufacturer of notebook PCs this year to enhance its contract production.

J.T. Wang, chairman of Acer, noted his company won't rule out the possibility of acquiring other brands.

Acer predicted its combined sales to total NT$283.6 billion (US$8.86 billion at US$1:NT$32) this year. But an institutional investor believed Acer would enjoy combined sales of over NT$300 billion (US$9.37 billion) this year.

Wang noted his company would make all-out efforts to score NT$5 (US$0.15) in earnings per share in 2007 with an addition of NT$1 (US$0.03) per year, so as to become a real profitable PC brand.

Acer is optimistic about its operations this year because of its successful direct sales deployment. Wang said his company would use many marketing methods to boost sales.

Wang predicted his company would ship over five million notebook computers and four million desktop PCs this year.

At present, Acer is cooperating with three contract manufacturers, including Quanta Computer Inc., Wistron Corp., and Compal Electronics Inc. It is considering adding one more to its list of contract manufacturers in the second half of this year. The hopefuls include Hon Hai Precision Industry Co., Inventec Corp.

To boost profitability, Acer will introduce its successful direct-sale experience in Europe to the U.S. and mainland China markets this year. Wang said the direct-sale model used in Europe can be duplicated in other markets.

Acer boasted it have begun making profits in the U.S. market since last year. The company's sales in the U.S. and the greater China markets will reach US$1 billion and US$900 million, respectively, this year. But sales in the European market will contribute over 60% of its combined sales this year.

Earlier, Acer targeted to develop itself into the world's third-largest PC brand this year. But because of the merger between Lenovo Holding Co. of the mainland and the PC section of IBM Corp. of the U.S. last year, Acer is not expected to reach the goal until one or two years from now.

Wang said his company would see sales of branded PCs reach NT$231.4 billion (US$7.23 billion) this year, with 3.7% of which, or between NT$8 billion (US$250 million) and NT$9 billion (US$281.25 million), to be used to promote sales of Acer-branded products this year.
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