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Acer seized second place in worldwide computer sales in 2009, thanks, in part, to strong sales of its Acer Aspire One netbook.  (Source:
Taiwanese company says American vendors can't keep up with aggressive pricing

Hewlett Packard, the world's largest computer maker, and Dell, third place in world sales, are powerful players.  However, both -- especially Dell – suffered during the recession.  Meanwhile Taiwanese OEMs ASUSTek and Acer, whose sales were heavily comprised of low-priced netbooks (the Eee PC and Aspire One, respectively), posted impressive growth.

Acer founder Stan Shih, who helped grow his company into Taiwan's top computer-maker, said this differential response is merely a sign of trouble to come for American companies.

He is quoted by Taipei-based Commercial Times as saying, "The trend for low-priced computers will last for the coming years.  But US computer makers just don't know how to put such products on the market... US computer brands may disappear over the next 20 years, just like what happened to US television brands."

Acer's talk may sound like the same kind of tired corporate rhetoric that executives often spout off.  However, one must consider Acer's impressive performance -- in 2009 the company passed Dell to become the world's second largest computer maker, and according to Digitimes, it is projected to in 2011 pass HP to become the world's top computer maker.  That progress has been heavily driven by aggressively priced PCs, especially netbooks.

One odd man out is Apple, Inc.  Apple, a U.S. firm based out of Cupertino, California, traditionally prices its notebooks well above even HP or Dell, let alone the Taiwanese.  However, it continues to grow and gain marketshare, perhaps proving that Acer's prediction of the American computer maker's demise premature.

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RE: And Acer is correct
By rudy on 1/20/2010 12:02:35 AM , Rating: 2
The thing none of you guys understand is the business model. Dell is not over priced I shop for computers 4 - 8 times a year and most times I get Dell or HP, because after sales and such they are cheaper and better configured than anything acer can offer. Now if I go out and do not look for deals then I would probably be better off with an off the shelf Acer. The thing is you cant really do much configuring with acer. So you pay a little more to configure the computer the way you like but you can get quick ship models or ones at newegg prebuilt that are well priced. Now that Dell is moving into retail you will see more of this.

Also cheap is not everything in Asia Dell and HP are premium brands which may be skewing the Acer execs opinion. You pay alot for those brands there. But if cheap was all that it was about Apple would be dead.

The point should be taken though HP and dell need to get out some pre configured systems for low prices. And flood the market with these.

RE: And Acer is correct
By StraightCashHomey on 1/20/2010 1:15:30 PM , Rating: 2
What kind of configuration are you referring to exactly?

"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer

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