Acer Inc, the number two PC vendor in the world, plans to introduce four new smart phone models later this year to boost profits, a day after his rival, HP, glancing rapidly growing smartphone market.
When the global economy shows recovery better, Acer also said on Thursday that new laptop PCs is expected to encourage higher profit margins after contributing 62 per cent increase in profit in the first quarter.
“The competitive advantage of new products can help us to improve the profitability of the third quarter,” said JT Wang, Acer’s chairman in an investor conference, although a small number of smartphone sales accounted for Acer now.
Analysts said the Asian technology companies are competing for a greater share of the smartphone market is now facing fierce competition after the world’s leading PC maker Hewlett-Packard to acquire Palm.
But Acer also expects growth in its traditional PC markets, the global laptop market is expected to grow 30 percent per annum in the next two years, though several analysts said the shortage of key components remains a concern and could “hurt” margin PC makers in the coming months.
“Margin in the second quarter may be affected, but its impact should be limited,” said Yuanta Securities analyst Vincent Chen, referring to the price increase key components such as memory chips.
“Acer has a scale and know how to control costs very well, and the third-quarter sales will probably grow faster,” said Chen told Reuters.
PC sales typically grow during the third quarter thanks to the new school year and the demand before Christmas.
Acer, one of the few Taiwanese computer brand internationally known, posted a net profit 3:29 billion Taiwan dollars ($ 105 million) in January-March, 2:03 billion Taiwan dollars versus last year and 3:52 billion Taiwan dollars in the fourth quarter 2009.
This year’s first quarter operating profit rose 2.7 percent from 2.2 percent in the same period last year.
The gain is largely consistent with the predicted 3:23 billion Taiwan dollars made by Thomson Reuters of I / B / E / S.
“Q1 is good enough and we’ve seen demand for PCs will come back very strong,” Acer CEO Gianfranco Lanci said at the same conference.
For Acer, a big is the problem of life: Acer acquired Gateway and Packard rival PC-Bell a few years ago, dramatically expanded the “tracks” in the United States.
Global PC sales rose sharply in the first quarter, according to industry estimates released earlier this month, as business finally started to spend a lot of investment in technological equipment.
Acer’s rapid growth reaching 13.6 percent of the global PC market in the first quarter, while the number-one, HP, gaining nearly 20 percent in the same period, according to IDC.
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