Acer aims to be third-largest PC brand in 2-3 yrs

TAIPEI (Reuters) - Acer, the world's fourth-largest personal computer vendor, aims to become the third largest in the next two or three years with more than 10 percent global market share, company chairman J.T. Wang said on Monday.

Wang told reporters Acer had hoped to become number three next year but had to re-adjust its schedule after Chinese rival Lenovo Group bought International Business Machines's PC unit.

"We understand we have been number one in Europe in the past three to four quarters. But we can't expect very strong growth (there) in the next several years," Wang said, adding that Europe accounted for 60 percent of the Taiwan company's revenue.

"We need China and the US markets," he said. China contributed 11 percent of revenue, the United States 8 percent, and the rest of the Asia Pacific region 13 percent, Wang said.

In the second quarter Acer ranked fourth in the world, with a 4.4 percent market share, according to International Data Corp.

Dell was first with 19 percent, Hewlett-Packard second with 15.4 percent and Lenovo/IBM third with 7.5 percent, IDC data showed.

Many PC makers have benefited from a recent spending spree by consumers who have taken advantage of low prices to replace desktop PCs with portables, incorporating the latest wireless functions.

In August Acer reported a second-quarter profit of T$2.265 billion (US$69 million), more than double that of a year earlier due to recovering global demand, and said it had maintained a strong presence in Europe and was making progress in Asia.

Wang said notebook computer shipments in the first six months of 2005 were 89 percent higher than the corresponding period last year, while shipments of desktops computers rose 41 percent.

Like competitors in Japan and the United States, Taiwan's top PC company minimises costs by subcontracting manufacturing to other firms, such as Quanta Computer Inc, Compal Electronics Inc and Wistron Corp.

"Acer is 100 percent dedicated to the channel business model. We study and draw the draft pictures to meet market requirement. Suppliers like Quanta, Compal and Wistron make it happen because they have thousands of engineers," Wang said.

"And I see a big potential in the so-called Three-One and Three Multiple Strategy: one global brand, one global company and one global team; multiple Channels, multiple product lines and multiple suppliers."