Acer talks up growth prospects

Against a backdrop of turmoil in the global financial markets and the ubiquitous uncertainty it has created the PC market will continue to grow in double digits, the CEO and President at Acer has predicted.

Talking at the Shaping the Future conference in Budapest, Gianfranco Lanci, head honcho at the Taiwanese giant expected 25% to 30% growth in notebook sales across all regions during the second half of the year and 3% to 4% rise in desktop shipments.

But in a nod to the current climate Lanci added "with the financial crisis enterprises will be slowing [PC] replacements".

This leaves the lion share of market growth coming from notebook sales to SMEs and consumers, retail sales boomed in the last quarter growing by 75% in the UK according to IDC.

But the desktop market has plenty of life left despite the marginal growth forecasts Lanci said.

"I don't think the desktop will die but it will dramatically change" he commented, adding the form factor would reduce in size to once again sit on the desk not under it and the gaming market and media centres would play vital roles in its growth ambitions.

The acquisition last year of Packard Bell and Gateway has increased Acer's desktop revenues - an area where the vendor has struggled to replicate the same success as with notebooks. Lanci said the integration of the two firms was almost complete and that it had not lost market share in the process.

"We are starting to see better growth on desktops and a better balance [in our portfolio]", he said.

Lanci hinted that In the first quarter Acer is to refresh the entire product ranges of all its brands to address different market segments; Acer will address mainstream markets, Gateway and Packard Bell will attempt cater for the more fashion conscious user and eMachines will be at the entry level space.

Three years ago Acer set out its goal to become the largest PC vendor in the world and Lanci said a multi-brand strategy was a key pillar in its strategy. But he added that reducing op-ex from 7% to below 6%, improving operating income from 3% to 4% and growing revenues by 15% a year were also essential.

Consolidation in the market may assist the firm and Lanci reckons the trend will speed up over the next two years, "There are small local players that are questioning how they can survive in the future." He added that any vendor outside of the top five global players may not have the economies of scale to compete.