Acer Expands Aspire Line--Online

Ailing Acer ramps up Web sales strategy with Celeron, PIII systems.

Tom Spring, PC World

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Acer has cut prices and added Intel Pentium III models to its consumer line-up to boost the Aspire line. Prices for Acer's minitowers and desktops start at $799 and top out at $2099 for fully loaded PIII systems.

In February, Taiwan's largest computer maker switched entirely to online sales for the U.S. market.

But the company hopes targeting the online home consumer will help it regain market share lost to Hewlett-Packard and Compaq, who have moved aggressively into the home market in the past two years. Acer's U.S. consumer sales slipped 33 percent in the fourth quarter of 1998 compared to the previous year; and the company posted $50 million in losses in 1998.

Acer representatives say the parent company has enjoyed record sales in the past quarter, which no doubt helps keep the U.S. PC operations alive. But analysts consider Acer's recent steps a last-gasp attempt to hold onto consumer sales that have been dismal for some time.

New Systems

Its new Aspire 6200, priced at $799, is powered by Intel's 333-MHz Celeron processor with 128KB of secondary cache. The systems also feature 32MB of memory, a 3GB hard drive, a 56-kbps modem, 40X CD-ROM drive, and a one-year warranty with lifetime technical and phone support.

Its $999 Aspire 6211 runs on a 366-MHz Celeron processor. Systems ship with 64MB of memory, a 4GB hard drive, and a 40X CD-ROM drive. Acer has also announced the Acer 6221, a 400-MHz Celeron system priced at $1199. The 6221 has the same specs as the 6211 but runs faster and includes a 15-inch monitor and a Lexmark 1100 color printer.

Acer dropped the price on its Acer 6210 by $80. The 400-MHz Pentium II system now starts at $1399. Standard specs include 64MB of memory, an 8GB hard drive, 40X CD-ROM drive, and a 17-inch monitor. Acer shaved $200 off its 6140 PIII-450 systems, bringing the price to $1699. The 6140 ships with 64MB of memory, an 8GB hard drive, 4X DVD-ROM drive, and 17-inch monitor.

Acer's top of the line Aspire 6150 runs on a PIII-500 and ships with a base configuration of a 13GB hard drive, 128MB of memory, a 40X CD-ROM drive, and a 17-inch monitor for $2099.

Onward for Acer

Acer made a major push with its Aspire line in October, stocking the models in chain stores such as Wal-Mart and Sears, Roebuck & Company, which cater to novice computer buyers. Acer officials said it was part of a move to distinguish itself from competitors. The company targeted first-time buyers.

But in February Acer pulled PCs off the shelves and announced it would focus on sales to small and medium-sized businesses, including schools and government agencies. Sales of business-class AcerMate, AcerPower, and AcerAltos servers soared 63 percent last year, Acer says.

Acer officials say the company is struggling to make the Aspire line profitable. "The retail channel is a very, very muddy thing," an Acer spokesperson says.

Acer's February 1999 share of U.S. retail PC sales was 0.1 percent, down from its all-time high of 5.3 percent in November 1997, according to the market research firm InfoBeads. And International Data Corporation showed the company's consumer PC sales as having slipped 33 percent in the fourth quarter of 1998, from the previous year.

Acer America has lost more than $200 million in the past decade. Its losses amounted to $71 million in 1997 and $50 million in 1998. The parent company has recently been on the upswing, posting record sales late last year.

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