Acer expected to see record high revenue of NT$200 B. in 2004

Dec 15, 2003 Ι Industry In-Focus Ι Electronics and Computers Ι By Judy, CENS
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Taipei, Dec. 15, 2003 (CENS)-- Acer Inc., Taiwan's leading computer maker and the world's fifth largest notebook computer manufacturer, is ambitious to net record high revenue of NT$200 billion (US$5.88 billion at US$1 = NT$34) in 2004.

If the company wants to break the NT$200 billion mark in annual revenue next year, it has to register a 40% revenue expansion. To achieve the revenue goal for 2004, Acer will earmark a budget of NT$6 billion (US$176 million) for sales promotion next year, which will be the firm's highest record of its kind. Acer will focus its sales promotion on the United States and mainland China.

J.T. Wang, president of the company, said that "Acer" today is as famous as Hewlett Packard (HP) in the European market in terms of notebook computers, and will try in the near future to outpace the latter there. Since its effort in Europe has paid off, Acer is planning to turn its spearhead to the U.S. and the mainland in 2004 and will actively tap the markets there during the year.

Wang said that Acer is to see revenue of NT$153.2 billion (US$4.51 billion) this year, with annual projected growth of 50%, and the performance for next year is expected to continue growing by 40% to break the NT$200 billion (US$5.88 billion) mark.

In 2004 Acer plans to set up seven more branches in the mainland, which will be located in Changchun of Jilin Province, Dalian of Liaoning of Province, Qingdao of Shangdong Province, Taianjin, Hefei of Anhui Province, Kunming of Yunnan, and Huhehaote of Neimenggu. After then, Acer will have a total of 25 footholds in the mainland, including the existing 18.

It is reported that Acer will appropriate 2.5% of its projected revenue in 2004 as marketing budget for its operations in the mainland. If plus the advertising subsidies from its partner Intel, Acer's total marketing expense in the mainland will reach NT$400-500 million (US$11.77-14.71 million) for next year. Moreover, it is believed that Stan Shih, chairman of Acer Group, has already set aside another US$10 million as special budget for sales promotion in the mainland.

The projected promotion programs in the mainland will include launching advertisements on its nationwide media and the cooperation with the international sports held there.

With its active sales promotion in the mainland, Acer ambitiously aims to hit record annual revenue of NT$300 billion (US$8,8 billion) in 2005.
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