Computer maker Acer Inc (
"We expect our total revenue to reach NT$120 billion in 2004, with revenue from e-business services accounting for 40 percent and product sales accounting for the remaining 60 percent," said Stan Shih (
An industry watcher said Acer is being forced to make this transformation because its core business is in decline.
"If Acer keeps counting on product sales, I don't think they can recover," said Eric Tsai (蔡士弘), an analyst at National Securities Corp (建宏證券).
Acer's product sales in the second quarter was NT$517 million, about NT$1 billion lower than the same period last year, Tsai said.
At a press conference yesterday, Shih said that James Chiang (
The service plans on integrating IT equipment, networks, management platforms and application software with the aim of providing Internet-related solutions to individuals and small and medium-sized enterprises.
Acer plans to team up with local and international telecommunication companies, software providers and other technology operators. The company has set its sights on the "greater China" market, Shih said. Acer wants to begin providing e-business services to Shanghai by March next year, and then extend outward during the second quarter.
Tsai, however, questioned such a strategy.
"I believe most companies in China are not ready or interested in e-business, so profits for the short-term will probably be hard to come by," he said.
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