PC maker Acer has set itself the goal of becoming the world’s number-three supplier of PCs by 2007, signaling that the core markets of US and China hold the best growth prospects for it.
Reports coming out of Shanghai, where Acer CEO JT Wang shared his business forecasts with conference delegates, suggest the company expects to be able to double its US revenues to $2bn by 2007.
Taiwan-based Acer plans also to mount a challenge in China, home of Lenovo Group, the Chinese company that bought IBM’s personal computer business for $1.75bn in May, and which currently stands as the market’s number three behind leaders Dell and Hewlett-Packard. In its domestic market, Lenovo holds a full third of the PC market.
Acer is causing a problem to some of its competitors because its slim-line organizational structure means it has small operational costs and can therefore compete very aggressively on price. It has managed to outperform its PC rivals in Europe with recent numbers for the second quarter of 2005 revealing a 68% growth spurt year-on-year in a market that is being driven by the proliferation of low-end notebooks.
Sales of Acer-branded laptops and desktops could top $10bn in 2006, up from an estimated $8bn this year on the back of it signing more high-volume deals with retailers and resellers.