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Acer has smart phone on deck

By Erica Ogg

Up-and-coming PC maker Acer is shifting its lineup a bit.

At its first-quarter investor relations conference in Taipei on Wednesday, Acer President Gianfranco Lanci said the company would release its first smart phone--a Windows Mobile device--by the end of this year or early next year, and that smart phones will account for 10 percent of company revenue.

Acer made its interest in the smart phone market very clear in March, when it purchased fellow Taiwanese company E-Ten, which makes PDA-phones under the glofiish brand.

At the conference, Acer said E-Ten would shift entirely to smart phones and away from PDAs, which it has sold in the past. In another change, the new Acer smart phone will be sold through wireless carriers, instead of directly to retail, as E-Ten has historically done.

Acer has played catchup to its PC rivals this past year, growing organically as well as through acquisition. The company bought U.S.-based Gateway and Europe's Packard Bell, and now finds itself behind No. 2 Dell with 9 percent of worldwide market share, according to IDC.

But will Acer be able to stir up the smart phone industry the way it has PCs? It's obviously not impossible for a new smart phone maker to enter the market and quickly scoop up share (hello, iPhone), but Acer is obviously no Apple. It doesn't have the same marketing machine or demonstrated design chops. The case of fellow Taiwanese manufacturer BenQ getting no success with its acquisition of Siemens Mobile is a prime example. But Acer doesn't have to make the next iPhone to find success. Betting on the evolution of mobile computing from laptops to a smart device like a phone is a no-brainer at this point.

This article first appeared as a blog post on CNET News.

 

 

    Talkback
ferdiei says...
killing off competition is different from acquiring & turning around a company with the highest potential, to rival their bigger competitors. let's see what Acer would do...

 
 
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