Acer plans Internet business investment

Acer Inc (宏電), which recorded a loss selling personal computers in the first two quarters, said it will spend US$1 billion in three years on Internet-related businesses to help return to profit as demand for PCs weakened.

The Taiwan PC maker expects the Internet business to account for 40 percent of total revenue by 2004, Chairman Stan Shih (施振榮) said.

"We believe e-business can be an important part of our services," Shih said in a speech without giving details.

The decision comes as Acer last month lowered its fourth-quarter sales forecast after shipments were disrupted by the Sept. 11 terrorist attacks. Acer expects to report losses in the third and fourth quarters as clients such as IBM Corp reduced orders.

The company cut its fourth-quarter sales estimate to NT$21 billion (US$608 million) from NT$27 billion.

Separately, Acer, Taiwan's only company with an international brand name, said it plans to increase production in China to 40 percent.

Acer already makes desktop computers and notebook parts in China.