Acer Forecasts China Revenue to Grow 150 Percent in 2011

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Acer, the world's third largest PC vendor, expects fast growth in China next year as its revenue there climbs to US$2.5 billion from $1 billion this year.

The company believes its China operations will make up more than 20 percent of total revenue within 5 years, an Acer representative said, confirming comments made by Acer Chairman J.T. Wang at a conference in Taipei.

Acer believes China is going to become the world's largest PC market within the next two years.

Tablet PCs will play a role in Acer's rise in China, according to the executive. The company estimates that its new tablet PCs and an alliance with Chinese PC vendor Founder Technology will assist in its bid to take a fifth of the revenue in China's PC market.

The tablet market took off this year after Apple unveiled the iPad. A number of companies have followed with similar products that use touchscreens, such as Samsung Electronics' Galaxy Tab and Research In Motion's BlackBerry PlayBook.

Acer executives earlier this year forecast the tablet market will reach about 40 million to 50 million units globally next year, and said Acer could take a 15 percent to 20 percent share of that market.

In China, Acer will depend largely on the Founder partnership to build its business. The companies earlier this year agreed to work together in China, with Acer taking over the operation of much of Founder's branded PC business, while Founder opened up its distribution network to Acer and agreed to continue to produce PC products. Acer paid Founder for the right to use its brand in China for the next several years.

Founder is also supposed to continue to handle business related to large state-owned enterprises and government agencies.

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