Feeds

Acer rides little netbooks to big profit

38 per cent growth

Protecting users from Firesheep and other Sidejacking attacks with SSL

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
OECD lashes out at tax avoiding globocorps' location-flipping antics
You hear that, Amazon, Google, Microsoft et al?
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.