Feeds

Acer rides little netbooks to big profit

38 per cent growth

3 Big data security analytics techniques

The ongoing global Meldown isn't melting everyone, as Taiwan's Acer demonstrated in its 2008 financial results, released Tuesday.

In fact, 2008 was a growth year for the world's third-largest PC maker, with operating income up a hefty 38 per cent from 2007: income was $428.8m (£299.8m) in 2008, up from $310.3m (£217m) in 2007. Revenue growth supported that increase, from $14.08bn (£9.84bn) in 2007 to $16.65bn (£11.64bn) in 2008 - a 15 per cent increase

Even during the painful fourth quarter of 2008, Acer's income rose from the same period in 2007. Income in Q4 2008 was $121.1m (£84.6m), up from $105.7m (£73.8m) in Q4 2007 - a 14.5 per cent increase.

There's a one-word summary of Acer's success: netbooks.

While there may be some debate about exactly what a netbook is when compared to a subnotebook or ultra-portable, there's little disagreement that the compact, low-power laptops are hot sellers these days.

In Q4 of 2008, for example, netbooks accounted for 20 per cent of European notebook sales. A recent survey by price-comparison site PriceGrabber showed netbook sales to be on the rise, with 10 per cent of online buyers owning a netbook, and nearly 20 per cent of mobile PCs being sought in December 2008 being netbooks.

Acer predicts that they'll sell 12 to 13 million netbooks in 2009, and their rival Asus projects another 7 million or so. If they and their competitors can maintain their respective market shares, netbook sales in 2009 might reach 30 million.

To be sure, Acer is managing its costs effectively as well. Reuters quotes analyst Vincent Chen of Yuanta Securities as saying, "Acer has been cutting costs and expenses very successfully, and these results show that they're looking in fairly good shape."

But cost-cutting won't keep you in the black unless you have a product that hordes of PC users want to buy. And Acer certainly seem to have that part of the equation well in hand. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Ex–Apple CEO John Sculley: Ousting Steve Jobs 'was a mistake'
Twenty-nine years later, post-Pepsi exec has flat-forehead moment
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.