Thu, Feb 08, 2001 - Page 17 News List

Acer scores notebook PC order from Dell Computer


Acer Inc (宏電), Taiwan's third-largest computer maker by market capitalization, has won order from Dell Computer Corp to make notebook computers, Chinese-language media reported yesterday.

Acer is scheduled to ship 50,000 units each month to Dell starting in September, making the world's No. 2 notebook computer company its second-biggest customer after the No. 1-ranked notebook seller IBM Corp, reports said.

The report indicated that the new orders from Dell will help Acer achieve a business turnover between NT$110 billion and NT$120 billion (US$3.7 billion) on a subcontracting basis this year. Acer separated a business that makes and sells computers under its brand name from another that manufactures under contract for multinational companies such as Dell and IBM following an announcement of restructuring plan by Acer's CEO Stan Shih (施振榮) in late-December.

"Acer operations have just become too big and too complex," said Shih. In line with the restructuring plan, Acer now has three major divisions focused on contract design and manufacture, brand name building and investments, respectively.

While Acer's restructuring plan -- which now makes a clear division between contract manufacturing and brand name business -- has gained positive responses from many of the company's international customers, analysts downplayed the news.

"Dell's order was received last year, and the company for various reasons delayed shipments to the second half of this year," said Henry King (金文衡), an analyst at Indosuez W.I. Carr Securities Ltd in Taiwan, who today downgraded Acer to "sell" from "buy."

The computer maker declined to comment on any client orders, but it gained "new orders" this year, company spokesman Henry Wang (汪島雄) said.

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