Feeds

Acer rides little netbooks to big profit

38 per cent growth

Top 5 reasons to deploy VMware with Tegile

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.