In Europe, for example, we cooperate with Hon Hai, which had already built up a complete and mature manufacturing base there, and we utilize our existing distribution networks to market desktops. So far, we are the only one in the top 10 vendors that is aggressively tapping the desktop market.
As desktops constitute over 60 percent of the global PC market, our focus on this business will help us grab the No.3 PC vendor position in the future.
TT: Given your determination to re-enter the US market after your withdrawal in 1999, what strategy will Acer use toward this goal?
Wang: We are holding a pragmatic attitude about the US market instead of dreaming of a huge leap in sales there. But both the US and China are essential markets in supporting our sustainable growth in the future.
Based on our successful experience in Europe, we have delegated our European team to take charge of the US strategy, and they will take advantage of their relationships with distributors in Europe to help in our expansion in the US.
Our collaborative distributors in Europe include Tech Data Corp and Ingrant Micro Inc; these are actually leading dealers in their home country, which is the US. They helped our business to double and even triple in Europe, and this collaboration will extend to the US market to fight our common competitors like Dell Inc, which adopted a direct-sales model for mutual benefit.
We also cooperate with our components suppliers, like Intel Corp, ATI Technology Inc and Nvidia Corp, by rolling out new products to tap the market. Our cooperation with sports-car maker Ferrari, whose largest market is the US, will sharpen our edge in publicity.
TT: PC companies have been transforming into consumer electronics and digital home appliance makers in recent years. How will you make Acer stand out from your competitors?
Wang: Digital home appliances are emerging but will not become mainstream in the market for the next two to three years. Shipments of LCD TVs are estimated at about 8 million to 10 million units this year, while the total TV market amounts to 200 million units.
Early birds do not always get the worms. Some brands may even fail while trying to enter such markets in the early stage. So our strategy is to make sure that we will certainly have a share in the sector.
We will focus on current mainstream products and endeavor to strengthen our brand and channels. Then we will enjoy a strong advantage in breaking into the digital home market when it takes off.
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