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Acer's Aspire One remains a netbook leader, and a strong seller worldwide. Analysts say Acer's netbook sales growth could help it eventually pass Dell for the number 1 PC retailer spot.  (Source: techshout.com)
Analysts say Acer beating Dell is possible, but not likely

The poor global economy continues to pound computer makers of all sizes. Netbooks continue to be popular, yet despite the increase sales of netbook systems most computer makers are still seeing revenues drop and having a hard time meeting analyst expectations.

InformationWeek reports that despite the poor economy and the reduction in computers being built and shipped, Acer could replace Dell as the world's number two PC maker this year. Dell only recently lost the title of number one PC seller in the world to HP.

Despite the chance Acer has of deposing Dell, Acer turned in disappointing numbers for its most recent quarter. The company lowered its 2009 projections for netbooks shipped to between 10 million to 12 million, a reduction from the previous expectation of 12 million to 15 million.

Acer profits for the quarter dropped 31% to $60 million, analysts expected Acer to report profits of $64 million. Total Acer revenue for the quarter fell 6.5% to $3.5 billion, down from $3.8 billion. Taking the number two crown form Dell could prove to be difficult. For Acer to take the second spot from Dell, Dell would have to post another consecutive loss in market share while Acer would need to gain. Dell has seen shipments fall for two quarters in a row.

Analyst Doug Bell from IDC said, "Hypothetically, if Acer grows like they say they are, then it's possible there could be a change in the No. 2 vendor." In Q1 2009 the numbers for Dell and Acer were in a bit of debate. IDC reported that Dell shipped 1.1 million more computers during the quarter than Acer shipped. However, research firm Gartner has the two computer makers in a near tie with Dell ahead of Acer by a meager 1/10 of a percentage.

Bell says with regards to Acer dethroning Dell for the second spot, "Over a million units is a lot of share to take from a stable, mature player. It is possible, but it would be very tough."


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As a consumer I could care less
By TMV192 on 5/2/2009 12:01:38 AM , Rating: 3
The only problem I see with this is that Dell would like start making crappy computers again to regain its lead. Acer's quality control is nonexistent, the only reason their netbook is number one is because they were smart enough to focus on a single model and make it cheaper than the rest




RE: As a consumer I could care less
By jvillaro on 5/2/2009 12:18:01 AM , Rating: 3
Well actually the experience I've had with ACER is very positive. And many people I know have had their ACER laptops for a long time working around the clock with no problems. They have outlasted many HP and DELL laptops.
They sure aren't pretty to look at but they get the job done and are very long lasting.


RE: As a consumer I could care less
By GodisanAtheist on 5/2/2009 1:59:03 AM , Rating: 3
I agree completely. At some point in Acer's nebulous past it acquired this reputation for shoddiness that it repeatedly fails to attain, in my experience.

Their netbooks are fairly high quality, with a much sturdier build than some of their competitors (MSI, for example) while their full size notebooks offer a wide range of better-than-average configurations at an incredibly competitive price.

I often have a hard time recommending the $1000 dollar Fujitsu/Toshiba/HP/Dell/Whatever when a superior spec'ed Acer is sitting next to it at half the cost.


By mindless1 on 5/3/2009 11:15:48 PM , Rating: 2
I own an Acer laptop and would agree the quality is not as bad as many suggest, I'd even prefer one to an HP in the sub-$700 price range if they cost the same for same features.

On the other hand it would be a ridiculous stretch to think a $500 Acer outspecs a $1000 Fujitsu, Toshiba, HP or Dell, unless what you try to do to make a comparison is deliberately strip down the latter brands but choose their deluxe ultrathin case styles which would be apples:oranges comparison since they all offer pedestrian models as well. IOW, in a fair comparion I'd put the price difference closer to 8% and that's just pulling numbers out of air, prices on many models fluctuate depending on what discounts are available, there's always a sale somewhere on something.


RE: As a consumer I could care less
By omnicronx on 5/2/2009 3:28:00 PM , Rating: 2
Not the same for me, I've never been too fond of the Acer laptop line. I've always liked Dell laptops, (although I would never buy a Dell desktop). I've seen many people go through numerous Acer laptops , and of course most of the time they are not covered under warranty by the time they need fixing. This is where both Dell and HP trump acer any day of the week. You can't expect a laptop to last forever like a desktop, and this is why support is so important in the laptop world.


RE: As a consumer I could care less
By TMV192 on 5/2/2009 6:42:03 PM , Rating: 2
Even their desktops aren't so bad anymore, I remember there was a time when Dell wouldn't ship a single nongaming pc with a graphics port, and upgrades were a nightmare, especially with a barely suffienct propriety PSU, nowadays their the studio desktops a pretty respectable and well priced. Bottom line is, Dell is shifting away from low cost crap and they are not moving as many computers because of uneducated consumers but I can bet the customers they get now are on average happier than the ones 3 or 4 years ago


By mindless1 on 5/3/2009 11:22:41 PM , Rating: 2
Dell used to use better PSU than they do now. For example they had PC Power & Cooling 250W models that could actually sustain that all day every day for a decade, unlike someone else's 350W.

What people keep forgetting is the primary reason to buy an OEM box is that you get it configured like you intend it to be for it's lifetime. They have qualified, competent engineers that spec out what wattage PSU a system needs and don't have to play games with PSU manufacturers overrating their products because the PSU manufacturer doesn't dare slit their own wrists by falsifying or using peak ratings, losing guaranteed high volume sales to a major OEM.

Dell is still selling highest volume of their lower-end models, as are most OEMs so I'm not sure where you got the idea that their inherant quality had changed. It was better than average (among all PCs, I am not comparing to only other largest OEMs) in the past and still is... kinda why they became a major OEM and still hold that distinction.

Why Dell are not moving as many is they jumped on the netbook market late, didn't offer as many promos in recent quarters as they had in the past while HP still did, and as for Acer they are relatively stronger globally while Dell relies more on domestic sales fueling their product lines.


RE: As a consumer I could care less
By SerafinaEva on 5/2/09, Rating: 0
RE: As a consumer I could care less
By omnicronx on 5/2/2009 3:31:38 PM , Rating: 3
Ha.. Acer and quality in the same sentence.. you really made me laugh..

Acer's are a good deal, nothing more, you are kidding yourself if you think Acer laptop build quality (and testing for that matter) comes even close to Dell or HP.

I have in the past bought a higher end laptop that I did enjoy (especially for the price), but most of their products cannot be compared directly to dell or HP. (at least in the laptop world, wouldnt be cought dead buying a Dell PC)


By inighthawki on 5/3/2009 3:58:11 PM , Rating: 2
I guess it doesn't apply for you, but all of the acer products i have used have been very high quality, as well as the acer laptop i have, which even happens to be a pretty low end model. Compared to other laptops i've seen and used, it is very good, and is built nicely.


By mindless1 on 5/3/2009 11:26:14 PM , Rating: 2
You must not have disassembled a typical $700 or less HP recently. Built to break is the best way to put it, in this day and age there shouldn't be basic problems like the hinges or power input jack failing and don't even get me started about the cooling which helped cause multiple nVidia chips to get hot enough that their packaging failed (partly nVidia's fault for sure, but if they had not ran so hot there would not have been a problem, which HP pretty much conceded when they released several bios which ramped up fan speed atypically high to compensate for poor design).


Shipping more units doesn't mean that much
By Sazar on 5/1/2009 5:12:21 PM , Rating: 3
Given that Acer is shipping such a large number of Netbooks, it doesn't really affect the bottom-line that much.

Also, comparing $60 million in profit with a reported Q1 take of $2.312 BILLION is a large difference.

So, effectively it may sound good for total units shipped, but it doesn't mean much in the grand-scheme of things.




RE: Shipping more units doesn't mean that much
By Sazar on 5/1/2009 5:13:04 PM , Rating: 2
Meh, should have said GROSS profit. My apologies.


RE: Shipping more units doesn't mean that much
By quiksilvr on 5/1/2009 8:04:42 PM , Rating: 5
Dailytech should have a five minute window for removal of comments so we can re-post it if we made a mistake. If someone replies too it before the five minutes, that window is gone and your grammatical mistakes will be forever shown to the world! MUHAHAHAHAHAHAHAHA!


By sgtdisturbed47 on 5/1/2009 8:27:54 PM , Rating: 2
It seems as though Acer has definitely moved up in the world in the past 4 years. I remember first coming in contact with them and thinking "who the heck is Acer?" but now, Acer is everywhere. Great laptops, netbooks, LCD monitors, and more. Great products at great prices. Makes sense that they would at least come close to having stiff competition with a large name like Dell.


By omnicronx on 5/2/2009 3:23:56 PM , Rating: 2
Acer has been number 3 worldwide for years.. Their netbooks are just keeping their sales pretty much the same even in a recession (although profits are still taking a hit).

Dell is just floundering, in fact this article is pretty misleading if you ask me. Once PC sales start to pick up again, Acer will probably be in the exact same position they were last year... Behind Dell and HP, but holding 3rd firmly.


By mindless1 on 5/3/2009 11:28:30 PM , Rating: 2
I could be wrong but vaguely recall Acer had more PC market penetration (at least in the US) during the Win95 era, after which HP lost some share and Dell gained some while Gateway foundered with whether they could make their country stores profitable.


Acer parts are very high quality
By TA152H on 5/2/2009 9:51:49 PM , Rating: 1
I don't know where the buffoons who are posting how Acer is crap are getting their (mis)information from. Especially compared to Dell.

How did Dell become known for quality? They are known by virtually everyone in the "know" for being low quality, sometimes non-standard computers for the fools who know nothing about computers. No one I know would even consider a Dell, and I go through great pains to tell people to avoid them.

Acer is the same company that makes Aopen motherboards and other components. Aopen has been known for being high quality almost forever, although, I've had nightmares with their support, I do have to admit that. But the quality of their motherboards is superb, and the other components of theirs I've used have been equally good. Dell? You must be kidding me. Everytime I have to open up this %#$#boxes for a friend to work on them, I want to break glass they are such complete and utter dung.

That they are in danger of falling into a death spiral pleases me no end. A company that sells computers should be a technology company, not a packaging company, and for too long Dell prided themselves on their low cost of distribution. They were INCREDIBLY stupid to betray Intel and start using AMD processors, when the Conroe was right around the corner. If they were going to do it, do it WAY earlier, or don't do it at all. But, nope, they sure showed Intel who was boss. Have you noticed that their market share hasn't been quite so good since then? Maybe by giving up exclusivity they lost some incentives from Intel? OK, definitely. Now they're just like everyone else, except Apple, who is exclusively Intel and no doubt gets some love from them.

Good job, Michael. You got to use K8s for a few quarters when they were better then the Pentium 4, and now you lost your special relationship with Intel possibly forever. Oh, and your market share! Good job!




RE: Acer parts are very high quality
By omnicronx on 5/3/2009 1:24:06 AM , Rating: 2
Haha funny post, especially the misinformation part..
quote:
Aopen has been known for being high quality almost forever,
Um.. no they havn't and Aopen is part of the low end budget market, so why you bring in that comparison I don't know.
quote:
Dell? You must be kidding me. Everytime I have to open up this %#$#boxes for a friend to work on them, I want to break glass they are such complete and utter dung.
If you actually read our posts, we were talking about laptops, and not desktops. Furthermore as other posters have noted, Dell has really improved over the years. They no longer use proprietary parts (for the most part) and it seems they have left the ultra budget market completely.

And finally your little rant about Dell is moronic. What Dell and Intel were doing was illegal. I find funny you call us 'misinformed' considering this very topic will probably be the centerpiece of the anti-trust case vs Intel.

There is nothing wrong with Acer products, but with laptops, support is the deal breaker to me, and Acer just does not cut it compared to other manufacturers.


By TA152H on 5/3/2009 3:37:34 AM , Rating: 3
I've opened up new Dells, I see no improvement in quality. They are complete crap. You must not know the difference.

Aopen is a very reliable part. I don't know anyone informed who considers them poor quality. I don't use them much anymore because I am really annoyed with their support, but Dell is horrific in that department too. Supermicro is probably the best quality followed by Intel, considering the support you get. Intel is BY FAR the best supported motherboard, but sometimes the products they come out with lack features. Gigabyte seems to be a very good enthusiast motherboard, but I have only started using them and can't say much about reliability yet. I don't think any are better than Supermicro though, although their support is only mediocre.

The fact you have to qualify that Dell uses less proprietary parts proves my point. They used special memory on new machines, or so they said. I couldn't convince our company to try regular ones. I mean, I know Dell is complete garbage, but even they wouldn't use proprietary memory, would they? Nothing surprises me with them though. Just make sure you wear gloves when you open their flimsy, ugly as Hell, sharp edged cases. It's like playing with razor blades.

Actually, you're complete uninformed if you think it was illegal, since Apple is doing it now. There are many legal ways to have special relationships, and your whole implication shows how little you understand. Are you implying Dell went to AMD because Intel wanted them to, to avoid legal issues? Oh, yes, that must be true. They went to them because they felt AMD had the right product, and their customers wanted Opteron based servers, mainly. They lost preferential treatment for it, and now have spiraled.

I agree with you about support. I had nothing but trouble with Aopen support, although Dell is pitiful too. They are always getting a black eye for support, unless you understand Hindi. HP is probably the best of the three, and, not too surprisingly, now dominate Dell.

I don't think Dell is in a death spiral yet, but let's hope they fall into it, and we're done with that practice of just being a distributor. Computer companies should be technology companies, or at least not proudly boast they are not. It's shameful. It also doesn't work now that they have prostituted themselves to AMD. When they were a distributor of Intel technology, they did well. Now, they are not. I thought at the time it was a bad move, no one with any brains thought AMD could compete with Intel in the long term, especially when Intel always had a better processor but stubbornly refused to use it on desktops.

But here's my real question. Why didn't Dell adopt the K8 much sooner? Why wait until the Conroe was not far from release? I mean, they knew the Pentium M was already better than the K8, and they knew the Conroe was based on it. Do it early, or not at all. It was a huge mistake. I was dumbfounded when it happened. The timing was terrible.

Dell quality? Good grief. I've heard everything now.


By mindless1 on 5/3/2009 11:34:44 PM , Rating: 2
AOpen was one of the better quality mainboards around the turn of the century. They lost some popularity due to pedestrian features and being undercut on the low end by the likes of PCChips/ECS, and being outdone on the higher end by Abit, Asus, Gigabyte. It basically signifies two extremes, the people buying cheap and the enthusiasts willing to pay for particular things because they know more about tech.

Dell on the other hand has had solid offerings which were often containing OEM versions of Intel retail boards. Pity they, like most, used a pathetically defeatured bios but I can understand their reasons in trying to cut support costs. THeir move with rewiring a standard ATX PSU then using the same 20 pin connector was inexcusable but they were high quality PSUs, miles better than what you would've gotten for a similar price-point at a local mom-n-pop computer shop.

Whether or not what Dell and Intel did was illegal, it is what it is which still gave customers the chance to decide for themselves what to buy, the cost difference wasn't THAT much, PCs cost more a few years ago so the numerical cost difference had to be seen in the perspective of % of total cost.

I do think Dell support for laptops is better than Acer, but then again if it never breaks what do you need the support for?


By scavio on 5/1/2009 4:19:24 PM , Rating: 4
quote:
For Acer to take the second spot from Dell, Dell would have to post another consecutive loss in market share while Acer would need to gain. Dell has seen shipments fall for two quarters in a row.

My calculator says otherwise. Although the scenerio above would likely have to happen in order for Acer to take the lead, Acer surging with Dell holding steady or Acer holding steady with Dell tanking are other options.




Well, here it goes . . .
By blueboy09 on 5/3/2009 2:24:15 AM , Rating: 2
IMO, Dell's stuff hasn't been that great, especially when I found out that it cost $100 to replace a proprietary power supply. Dell's in the #2 spot, because like it was mentioned earlier in some of the posts, that they make cheaper components hence the lower price. Acer on the other hand needs to start selling more if the want the #2 spot but i don't see that happening anytime soon, but knowing my luck i'll be eating my words by the end of the year if not sooner. - BLUEBOY




RE: Well, here it goes . . .
By mindless1 on 5/3/2009 11:37:03 PM , Rating: 2
Know what's funny? It may cost $100 to replace the proprietary power supply, but HP would charge you as much to sell a standard replacement. So on the one hand we have to appreciate when OEMs stick with standards but on the other hand, what they charged is somewhat irrelevant, anyone competent enough to diagnose and replace a failed PSU ought to have built their own in the first place.


Odd Title
By mckirkus on 5/1/2009 7:19:49 PM , Rating: 3
Title should read:
"Acer Not Likely Take Dell's Number Two PC Shipper Crown"

I don't think these stats will have any meaning in a few years when the line between MID/Netbook/Laptop begin to blur.




RE: Odd Title
By SerafinaEva on 5/1/09, Rating: 0
By StinkyWhizzleTeeth on 5/2/2009 5:24:46 PM , Rating: 2
I read somewhere awhile back (Maybe at Anand or Tom's hardware) that Acer had the best replacement parts costs. If that is true then for DIY type people the Acer laptop is the way to go.




The problem with Dell
By Hacp on 5/1/09, Rating: -1
RE: The problem with Dell
By mjdaly on 5/1/2009 9:35:33 PM , Rating: 3
I can go to my local Wal Mart, Sams Club, and Best Buy and purchase a Dell laptop or desktop. They do now, in fact, have a presence in several B&M stores.


RE: The problem with Dell
By microAmp on 5/1/2009 9:37:37 PM , Rating: 2
http://www.dailytech.com/Best+Buy+Stores+to+Sell+D...

They've been selling them for almost 1 1/2 years now.


RE: The problem with Dell
By hansuede on 5/3/2009 10:04:21 PM , Rating: 2
I perceived the only challenge Dell might encounter is how they can shift their strategy to be more flexible in Asian Market since people around there arn't generally quite into the art.They need something simple and equipped nicely with general specs.They stick to their three gold theory a bit too sturbbonly.
Still,those high-end model Dell presents gain lots of word-of-mouth.Not to consider the 12" inspiron laptop.First Dell laptop which dissappoints me.


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