Taiwan computer giant Acer Inc (
The company plans to invest NT$5 billion to NT$6 billion to develop operations in this area in the near term, the paper said.
A high-ranking company executive was quoted as saying that within three years, these operations will amount to 20 percent of its hardware sales.
Acer will use the funds derived from sales of stock it holds in Taiwan Semiconductor Manufacturing Co (
The company will hold a press conference later this month to unveil its new focus, the paper said.
In related news, the Acer Group said sales under its own brand this year will fall short of an earlier estimate of US$3.4 billion.
Acer will sell 10 percent to 20 percent fewer branded products than predicted earlier this year, said Acer Inc Chief Executive Wang Cheng-tang (
"Demand in the US market is declining at a rate faster than we had expected," Wang said.
Acer sold NT$16 billion (US$470 million) of computers products under its brand in the US last year, making it Acer's second-largest market after Europe, where it sold NT$28.8 billion in its own brand products.
The company said over the weekend that it will lose money from operations in the second quarter as sales of its branded PCs fell and customers such as International Business Machines Corp ordered fewer machines.
"Companies want to use up inventories on hand as the economy slows," Wang said.
"We expect orders to remain weak in the coming months."
Still, Acer will earn a net income for the quarter as it sold investments, including NT$3.7 billion (US$109 million) in Taiwan Cellular shares and NT$201 million in Acer Display Technology Inc shares to shore up its profits, Wang said.
Wang expects demand for PCs to pick up by the late third quarter based on "feedback from component makers."
The company, once among the seven-largest PC makers in the world, stopped selling computers in the US under its brand name late last year, choosing to focus on manufacturing equipment for other companies, such as International Business Machines.
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