INTERVIEW-Acer aims for double-digit share in China by 2011

Thu Nov 26, 2009 4:51am EST

TOKYO Nov 26 (Reuters) - Acer Inc (2353.TW), the world's No.2 PC maker, said it will target a double-digit PC market share in China in two years, in a move that could weigh on margins.

Acer, which has grown over the last three years in Brazil, Russia and India, has struggled in China, whose PC market is dominated by Lenovo (0992.HK) and where Acer has been flitting between fifth and sixth place in market share.

The market leader in low-cost netbooks is steeling itself to grab double-digit market share, up from its current 6 percent to 7 percent, by designing China-specific notebooks, shoring up its netbook lineup and strengthening its local sales force, its CEO Gianfranco Lanci told Reuters in an interview.

"We don't like being anything less than No.3 ... You need scale, although of course it's always a balance between market share and profit margins," he said. "Five years from now, China is going to be larger than the U.S."

The chase for market share against rivals Founder Electronics and Dell (DELL.O) could weigh on margins in an ultra-price competitive market, but Lanci said he expected strong demand to help bolster prices in 2010.

Acer's current forecast for a 5 to 10 percent decline in its average selling price is conservative, he said, adding that it would more likely be 5 percent, given the current recovery in demand for both notebooks and netbooks worldwide.

(Reporting by Mayumi Negishi in Tokyo and Kelvin Soh in Taipei)

((mayumi.negishi@thomsonreuters.com; +81-3-6441-1812; Reuters Messaging: mayumi.negishi.reuters.com@reuters.net))

((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)) Keywords: ACER/CHINA

(C) Reuters 2009. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nTKX006563

Related Quotes and News

Company
Price
Related News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.