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CEO expects Acer to be one of China's top manufacturers

Taiwan's computer giant Acer Inc (宏電) will expand its operations in China by reinforcing maintenance services and exploring the household computer market, Chairman Stan Shih (施振榮) said yesterday.

Last year, revenue from China operations accounted for 17 percent of Acer's overall revenues. The company has projected the percentage will grow to 25 percent in the fourth quarter of this year, and to 40 percent in three years. Acer Group revenues in 2000 totalled US$9.9 billion.

Shih said that in the first half of this year, the company's China operations only managed to gross US$3 billion, 20 percent less than the target. He attributed the setback to the global economic recession and severe competition from China's Legend Group (聯想集團) and Dell Corp.

In order to gain a solid footing in China's market, Acer is offering "ready-in-two hours" maintenance services at its outlets, said Shih.

One of the world's top 10 PC vendors, Acer's production lines range from high-end PC servers and multimedia desktop computers to notebooks, computer peripherals and components.

Despite the fact that the company's investments in the Internet sector in recent years -- including mobile phones, wireless communications and e-business solutions -- failed to meet expectation, Shih emphasized the importance of taking the business a step forward into the Internet age.

Shih announced a reorganization plan six months ago and the company is undergoing a transition to separate its design, manufacturing and service business from the Acer-brand business.

Wang Chen-tang (王振堂), president and CEO of Acer Brand Operations, said recently that the company will apply its brand strategy in China and added that he expects the company to become one of the top three PC manufacturers there this year.
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