Acer eyes 70% sales growth in mainland China for next year

Taipei, Nov. 17, 2003 (CENS)--Acer Inc., one of Taiwan's largest producers of information technology products, recently targeted NT$28.5 billion (US$838.23 million at US$1:NT$34) in sales in the greater China region next year, with sales in mainland China to challenge NT$13 billion (US$382.35 million) for an annual growth of over 70%.

If the sales target in mainland China is achieved next year, Acer will become one of the top-five personal computer brands in the mainland market.

H.L. Lin, president of Acer's Greater China operating headquarters, said his company projected to garner a minimum annual sales growth of 50% in the mainland next year from this year's NT$19 billion (US$558.82 million).

Acer president J.T. Wang said he is not satisfied with his company's own-brand sales in mainland. "At present, Acer brand PCs rank eighth in the mainland market," said Wang. "Over the past several years, we haven't yet been deeply involved in that market. But now we have decided to launch massive marketing in that market next year to boost sales of own-brand products there."

To enhance deployment in the mainland, Acer recently retrieved the agent rights from four mainland sales agents and its mainland branches will be responsible for the sales in that market.

Acer sees sales of own-brand PCs in the greater China market hit historic high in the fourth quarter of this year. The company attributed the booming sales to the successful marketing of ultra-thin notebook computers and the substantial growth in sales of desk-top PCs because of its cooperation with Hon Hai Precision Industry Co.

In the past Acer could only sell 15,000 desktop PCs per month in the mainland. After cooperating with Hon Hai, which provides cheaper contract products for Aspire T100, Acer PowerSV notebook PCs, Acer has seen monthly sales reach 27,000 notebook PCs in mainland and have successfully grabbed some customers of mainland's PC-assembly market.

Acer said it is capable of selling 54,000 PCs per month in the mainland, Taiwan, and Hong Kong. Thanks to the successful sales of such domestic distribution channels, including Sunfar, Nova, 3Cnet, J.P. Computer, and Tomnet, the company saw monthly sales reach 24,000 PCs in Taiwan. The company boasted its sales have reached 3,000 PCs per month in Hong Kong.

Acer estimated its sales would top four million notebook PCs and 4.5 million liquid crystal display (LCD) monitors next year. Because of the anticipated increase in sales of notebook PCs, the company has decided to order eight million LCD panels to facilitate the production of LCD monitors next year.

The company boasted it would have combined sales of NT$150 billion (US$4.41 billion) this year, up 50% from last year. The company targeted to see sales grow by 40% to reach NT$200 billion (US$5.88 billion) next year.

To secure sufficient supply of the LCD panels, Acer recently has formed strategic alliances with three domestic manufacturers of the components, including AU Optronics Corp., Chi Mei Optoelectronics Corp., and Quanta Display Corp. It is now having talks with another domestic LCD-panel supplier Chunghwa Picture Tubes, Ltd. On the same topic, in addition to some South Korea's manufacturers, including Samsung Electronics. And LG Electronics.

"Many LCD-panel suppliers have demanded PC firms establish close ties with them to secure a guaranteed supply of that components," said Wang. "Some PC firms even develop new products in accordance with the specifications of the LCD panels they secure."

Wang said there is a supply shortage in 15-inch LCD panels and a tight supply in 17-inch panels.