Acer Inc (宏碁) said it’s aiming to capture 15 percent of global tablet-computer sales next year, challenging Research In Motion Ltd (RIM) and Samsung Electronics Co for second place in a market dominated by Apple Inc’s iPad.
Shipments will begin next quarter as the Taipei-based PC maker jumps into a market where global shipments may reach 50 million units next year, chief executive officer Gianfranco Lanci said on Wednesday in an interview in Chongqing, China.
Lanci’s projections indicate Acer, the top maker of low-end laptops known as netbooks, may sell more than twice the number of tablets JPMorgan Chase & Co estimated last month. The push highlights the intensifying competition to become No. 2 in the fastest-growing segment of the computer industry as companies from RIM to Samsung battle to offer the most popular alternative to the iPad.
“The company has talked aggressively about the tablet market, but Apple is still very dominating,” said Steven Tseng (曾緒良), an analyst at RBS Asia Ltd. “Aside from price, it’s hard to tell what Acer has in their products to differentiate themselves and outperform. If they make cheap models like in the netbook area, they may have success. They’re really good at volume business.”
Still, Tseng rates Acer shares “hold,” partly on concern that new tablet products may not be able to make up for declining sales of netbook computers.
THE COMPETITION
Acer last month unveiled a lineup of three tablet computers — two devices based on Google Inc’s Android operating system and one on Microsoft Corp’s Windows software.
The tablets may be priced between US$299 and $599, depending on configuration, screen size and connectivity, Lanci said. The iPad is priced between US$499 and US$829 in the US.
Samsung, based in Suwon, South Korea, unveiled its Galaxy Tab in September, and RIM plans to release the 7-inch BlackBerry PlayBook next quarter.
“There is competition and we are set to compete,” Lanci said. “We have strength in designing and developing products. We have strength in terms of channels. We have strength, probably more than other people, in emerging markets.”
‘DEAD ON ARRIVAL’
Apple’s iPad sales will almost double to 25.5 million next year, while Samsung will sell 6 million tablets and RIM will sell 5 million PlayBooks, according to September estimates at Canaccord Genuity.
Tablets bridge the gap between laptops and smartphones such as RIM’s BlackBerry and Apple’s iPhone. Apple, which showed the appeal of such devices by selling 3 million iPads in the first 80 days after the product debuted in April, accounted for 95 percent of the tablet market last quarter, according to Strategy Analytics.
Apple chief executive officer Steve Jobs in October said that devices such as the PlayBook are “dead on arrival” because they are too small to compete with the iPad, which has a 9.7-inch screen.
Lanci dismissed Jobs’ comment, saying there was room for both sizes.
“It depends on user needs,” Lanci said. “While a 10-inch tablet is a very good solution at home or in the office, seven inches can be a very good solution for people traveling or with different needs, even replacing e-books.”
CHONGQING PLANT
Acer will start delivering its tablets in the first quarter from existing plants in and around Shanghai, Lanci said. Production of the devices may shift to a plant in Chongqing, which is part of the US$150 million investment in the city that Acer and the municipal government agreed on Wednesday, Lanci said. The new facility will start operations in the third quarter, he said.
The Chongqing plant will have the capacity to produce 30 million to 40 million notebooks or netbook computers annually, and will also manufacture smartphones and tablets, Lanci said. The factory will help Acer almost double the portion of sales it gets in China to 25 percent of revenue within three years, from more than 10 percent projected for next year, he said.
China will likely overtake the US as the world’s largest computer market within three years, Lanci said.
Acer had a 13 percent share of the global PC market in the third quarter, ranking it second after Hewlett-Packard Co, according to IDC.
Lanci said that the growth of tablet computer sales wouldn’t kill the company’s netbook business.
“We don’t see the netbook market dying or declining, except in the US,” Lanci said. “For netbooks outside the US, we still see very good growth.
The two segments, we are convinced, will coexist together. We see tablets as another opportunity to grow the PC market in the future, not tablets as replacing other devices,” he said.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
RSS