Thursday, October 15, 2009

Acer Shares Rise After Company Replaces Dell as No. 2

Oct. 15 (Bloomberg) -- Acer Inc. climbed to a nine-year high in Taipei trading after it overtook Dell Inc. to take the second place in the global personal-computer market last quarter, according to market research firms IDC and Gartner Inc.

The company gained 1.2 percent to NT$82.70 on the Taiwan stock exchange as of 11:12 a.m., the highest level since Sept. 13, 2000, while the benchmark Taiex index added 0.6 percent.

Acer’s market share has increased to 15.4 percent, compared with Dell’s 12.8 percent, according to Gartner. Hewlett-Packard Co., which took the lead from Dell in 2006, remains the world’s biggest PC maker. Acer’s shipments surged 25.6 percent last quarter, the fastest growth among the top PC makers, buoyed by sales of low-cost netbooks.

“Acer can now aim for the No. 1 position,” said Bamboo Lin, an analyst at Sinopac Securities Corp. “Even though it’s gaining market share, it’s not compromising on its margins, so this is good for the firm.”

The Taipei-based company said on Oct. 12 that it expects net income in the three months ended Sept. 30 to reach NT$3.45 billion ($107 million), exceeding the NT$3.23 billion median of 12 analysts’ estimates compiled by Bloomberg. Acer’s operating income may reach a record NT$4.7 billion in the third quarter as consolidated sales rise to NT$167 billion, the highest ever, the computer maker said in an e-mailed statement.

Acer said it expects shipments to rise in the fourth quarter from the preceding three months, without giving estimates.

Dell has struggled to reach consumer laptop shoppers, the industry’s biggest source of growth, said Loren Loverde, an analyst for IDC. The company gets about 80 percent of its sales from business customers, she said.


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