Acer reports strong Q1; says it fears HP, not Dell

Acer said its first quarter net profit nearly doubled from a year ago, and named HP as its most potent rival now, not Dell.

Acer reported its first-quarter net profit nearly doubled from a year ago despite strong competition in the PC market from rivals such as HP and Dell.

Net profit at the world's fourth largest PC company rose to $NT5.23 billion New Taiwan dollars ($US160.9 million), from $NT2.56 billion. Revenue increased 26 per cent from last year to $NT83.0 billion.

Competition in the PC industry heated up during the first quarter and should remain cutthroat throughout the year, executives from Acer said.

"It's been bloody fighting for the past three months," Acer's chairman, JT Wang, said, noting the company's rivals have all stepped up their efforts in Acer's key market, Europe.

But the company noted that only itself and HP gained market share during the first quarter, while Dell and Lenovo Group both lost.

"Our biggest competition in the US is not Dell, it's HP," Acer's president, Gianfranco Lanci, said. HP has stepped up its performance since its new CEO was installed, turning it into a more potent rival.

Dell lost market share during the first quarter, according to figures from market researcher, Gartner Dataquest, taking 16.5 per cent of the global market, down from 16.9 per cent in the first quarter a year ago. HP increased its share to 14.9 per cent from 13.8 per cent, and Acer jumped to 5 per cent from 3.9 per cent.

The Taiwanese PC company also said that Microsoft's delay in launching its Vista OS could hurt PC sales in the fourth quarter of this year, since some customers might put off buying new PCs until 2007.

Aside from the impact from Vista, Acer executives expect the PC market to grow at a rate just slower than last year.

The company said it's own sales in the US will likely double this year to about $US2 billion, while sales to China should quadruple from a year ago.

Join the newsletter!


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


PCW Evaluation Team

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.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

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?