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Acer eyes commercial PC market in China

Acer eyes commercial PC market in China

Taipei, Feb. 11 (CNA) Acer Inc., one of the world's leading personal computer vendors, is targeting the rapidly growing commercial PC market in China in a bid to boost its sales there. Scott Lin, head of Acer's greater China operations, told reporters Friday that the company expects commercial PCs to account for 30 percent of Acer's total sales in China in 2012. He said shipments of Acer's commercial PCs in China exceed 30,000 units a month on the back of demand from Chinese conglomerates as well as small and medium-sized enterprises. The Acer executive said the commercial PC market in China has great potential for growth. In addition, Lin said, to penetrate the huge China market, Acer is taking advantage of the broad distribution network operated by a China-based counterpart, Founder Group. In the second half of 2010, Acer acquired Founder and has been intensifying efforts to integrate the Chinese firm into its corporation, while leaving the Founder brand name intact in the mainland market. As Founder has close business ties with Chinese government agencies, education organizations and the military, Acer is making use of these connections to promote its products, Lin said. He said that as Acer has gone through a challenging moment in integrating Founder, its efforts have paid off with the aim of using Founder as a channel to sell Acer's home and commercial PCs to cities and rural areas in China's hinterland. He said the combination between Acer and Founder has created synergy, allowing Acer not only to strengthen its foothold in major Chinese cities but also to extend its reach to fourth-, fifth- and sixth-tier cities in China. Currently, Acer has more than 900 employees in China, Lin noted. Meanwhile, Acer reported that its unconsolidated sales for January fell 17.66 percent from a month earlier to NT$27.20 billion (US$919 million) due to the reduced number of working days over the Lunar New Year holiday. The lower sales figure also reflected a shortage of hard disk drives caused by last year's flooding in Thailand. Earlier this year, Acer Chairman J.T. Wang said he expected the impact from the hard disk drive shortage to fade and that the company's revenue is expected to improve gradually from February. In the first nine months of last year, Acer posted NT$6.696 billion in net losses, or NT$2.55 in loss per share, largely due to its efforts to assign a one-time write-down to clear its inventory in the second quarter amid slowing global demand. (By Jalen Chung, Lo Hsiu-wen and Frances Huang)


Updated : 2021-10-27 21:30 GMT+08:00