The nation's own-brand personal computer (PC) companies that plan to make inroads in the US will need to increase investment in marketing and brand-building to reach the goal in the world's largest PC market, an International Data Corp (IDC) official said yesterday.
Taiwanese companies usually spend large amounts on research and development, focusing on product design, features and low prices, said Roger Kay, vice president of client computing with the Framingham, Massachusetts-headquartered IDC.
But they also need to understand the local culture and psyche, Kay said.
"The US is a winner-take-all market where illusion and star quality mean as much or more than the situation on the ground," he said.
Take Acer Inc. The Taiwanese PC maker returned to the US market last year, after suffering losses which IDC said amounted to US$1.8 billion in that market five years ago. Acer is currently a big player in European countries and is ranked by IDC as the third-largest PC vendor, with a market share of 7.7 percent in Europe, the Middle East and the African region in the third quarter of this year.
Aiming to become a global top-three player in the next three years, Acer is trying to duplicate its European experience in the US market by initially focusing on corporate customers, Kay said.
"I think they are doing the right thing," he said. "As a foreign company, it is difficult to compete against local big players [like Dell Inc] with same business models."
The company may have better luck tapping the US consumer market after first establishing a strong foothold in the commercial sector by providing fresh products at good prices to their partner distribution channels, Kay added.
Acer is ranked as the No.8 PC vendor in the US. Its market share increased by a slight 0.2 percent in the third quarter from 0.5 percent the previous quarter, according to IDC.
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