Acer aims for $US12 billion sales in 2006

Acer believes it can keep up the breakneck growth its seen in the past few years, forecasting NT$400 billion (US$12.27 billion) in sales this year.

Acer, the world's fourth largest PC vendor, believes it can keep up the breakneck growth it's seen in the past few years, forecasting $NT400 billion ($US12.27 billion) in sales this year.

Acer released the sales forecast when it issued its full year 2005 financial results. The Taiwanese company's sales last year rose 41 per cent year-on-year to $NT318.1 billion, while its net profit rose 21 per cent to $NT8.48 billion. It was a record year for Acer in terms of sales.

The company wants to move up in global PC rankings and trump China's largest PC seller, Lenovo Group Last year, Acer's PC shipments rose 58.1 per cent over 2004, while Lenovo's grew only 16.4 per cent, according to market researcher Gartner Inc. The Chinese PC maker holds third place with a 6.9 per cent share of the global market, compared to Acer's 4.6 per cent.

Acer has benefitted from strong laptop sales, particularly in Europe, and has credited its close relationship with distributors as a key reason for its success in recent years. It's brisk growth rate last year left other PC vendors far behind. By comparison, Dell, the largest PC company, increased its shipments 18.6 per cent last year, while HP shipped 15.1 per cent more PCs in 2005 than it did in 2004, according to Gartner.

The company's financial forecast of $NT400 billion would mark 26 per cent sales growth over last year, and would also be a record for Acer. A new push into the US market as well as continued strength in laptop sales are expected to help the company hit its targets this year.

A less friendly market could hold Acer back this year. PC shipments are expected to slow this year, up only 10.7 per cent to 234.5 million units compared to the 15.5 per cent increase in 2005, according to Gartner.

Last year, 211.8 million PCs were shipped globally, the researcher said.

In addition, cut-throat competition could cause price wars among PC vendors, which is great for users but would hurt Acer's chances to reach its goal.

"We expect the PC price war to intensify in the second quarter as Dell joins the battle, [and] we believe all [PC vendors], including Acer, will continue to suffer from declining average selling prices and margin erosion," executive director of Asia-Pacific research for Goldman Sachs, Henry King, said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?