At 30th anniversary, Acer vows to take bronze in 2007

At its 30th anniversary party, Acer said it will take over the number 3 slot in global PC market share next year.

At its 30th anniversary party, Acer moved up the time it expects to take over the number 3 slot in global PC market share to 2007, shaving a year off its previous forecast.

Its strategy is to partner with more PC parts suppliers and distributors, who in turn will help to expand its market. Expressing confidence in that business model, Acer executives said the company could keep up its breakneck growth and topple Lenovo Holdings by the end of next year.

"We can become number three through organic growth, not through merger and acquisition," said Gianfranco Lanci, president of Acer, during the celebration Tuesday at an upscale hotel in downtown Taipei.

China's Lenovo is currently third in global PC shipments, with 7.8 percent of the market, according to IDC. Although Acer trails at 6 percent, the company is growing at a much faster pace than Lenovo: 34.3 percent in the third quarter, compared to around 10 percent for Lenovo. In fact, Acer's growth rate vastly outpaced the first- and second-place PC makers as well, with Hewlett-Packard at 15 percent and Dell at 3.6 percent.

The Taiwanese PC maker expects to continue its momentum in PC sales by selling more laptops and small form-factor desktops. By focusing on smaller desktops, Acer can run the business similarly to its laptop business, said J.T. Wang, chairman of the company.

It will also continue to hone its strategy of partnering with more suppliers and distributors. Acer believes the key to winning over new partners is to offer good products that generate stable demand, and giving up some profit margin to ensure its channel partners make reasonable profits as well.

"They grow with us," said Wang. And the partnership makes it difficult for partners to do anything that hurts Acer, since their profits become tied together. "If they hurt Acer, they hurt themselves," Wang added.

The direct sales method championed by Dell has matured somewhat, Wang and Lanci said, as electronics retailers learned to market PC hardware on the Internet as well.

Acer believes the U.S. and China will continue to grow in importance for the company, despite the fact it only entered the two markets a short time ago. The U.S. already accounts for as much as 20 percent of Acer's revenue, up from almost nothing two years ago, while China accounts for about 6 percent, Lanci said.

Acer's revenue rose 17 percent year-on-year in the first nine months of the year to NT$250.99 billion (AUD$9.8 billion), and securities houses such as Goldman Sachs expect it to forecast brisk fourth quarter growth when it holds an investors' conference later this week.

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?