Feeds

Acer CEO talks up Chinese expansion

Moo moos investor concerns over Gateway

Maximizing your infrastructure through virtualization

Computer maker Acer is looking into the possibility of a Chinese acquisition following its decision to buy US-based Gateway.

Acer chief executive, Wang Jen-tang, said in an interview with the Financial Times that such a deal could boost the PC vendor's market share in China, he also hit back at investors who have criticised the firm’s motives for expansion.

Acer's share price plummeted 11 per cent in the past week as investors expressed growing concern that the firm's big spending spree could prove to be a shortsighted and expensive strategy.

Wang said that after Acer has acquired Gateway and European computer maker Packard Bell - which Acer will control as part of the deal - he wants the firm to go head-to-head with rival Chinese firm Lenovo.

Lenovo recently upped the ante when it integrated IBM's PC division into its own business. And just last week Seagate, the hard-disk-drive giant, squashed rumours of a rumoured takeover bid from the firm.

Taiwanese-based Acer will jump to third place among global PC manufacturers following its $710m acquisition of Gateway last week. However, Lenovo is currently hot-on-the-heels of the firm's market share with just one percentage point dividing the two computer makers.

US net margin could also be lifted by between two and three per cent within two years because of the Gateway deal, said Wang.

He told the FT that Acer hoped the acquisition would help it strengthen its business presence in the US market, with revenues of around $6bn to $7bn expected within a year of the acquisition.

He said: "The Chinese market is very important… But under our global strategy, the US market is even more urgent. So after we reinforce our leadership role in Europe and succeed in stabilising the US, we will start paying more attention to Asia." ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
Disaster Recovery upstart joins DR 'as a service' gang
Quorum joins the aaS crowd with DRaaS offering
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.