Acer Bets on Market Mobile Smartphone
Facts gross profit margins greater smartphone makes the PC vendors crowded into it. Acer also made a big bet. Nokia and the BlackBerry seems to be aware.
Acer began to join in the invasion of the mobile market. For the initial stage, the company has launched in February range smart phone using Microsoft Windows Mobile software. Since then Acer has announced five more mobile phones including one that runs Android, Google’s mobile platforms.
Phone market looks very ripe. Mobile phone sales worldwide of about 1.1 billion units this year, including 150 million smart phones. That number far exceeds the sales of personal computers is estimated to reach 280 million units.
The fact is until now, the smartphone has a gross profit margin of 30% or more, compared with 3% or 4% for low-cost computers that make up the majority of businesses Acer.
“Margin [smart phone] will come down as soon as the market grows, but still better than a PC,” said Acer chief executive Gianfranco Lanci, the Italian who divides his time between Milan and Taipei and took over the chief executive in 2008. Under his leadership, Acer is quickly becoming a key player in the netbook segment, which sparked a growing trend throughout the year.
Lanci goal is to make Acer one of the five largest smartphone vendor in 2014. He argued, Acer experience as a computer vendor that provides more benefits than traditional mobile phone makers.
“Consumers want a similar experience on smart phones as they do on the PC,” he said. “We have a better understanding than the producers who come from the phone industry.”
HP already offers a line of business-focused mobile called IPAQ since 2004 and says it has sold millions of units. HP plans to begin selling the new iPAQ phone through AT & T service early in December.
Dell and Lenovo recently developed a smartphone for China Mobile. Dell has also made an agreement with a Brazilian operator and has hinted that a similar handset will be available in the U.S. next year.
Acer aims to win this game by offering more phones and out in the near future. The phone is available in 18 countries throughout Europe, Asia and the Middle East, and Acer says it has sold just under 300,000 units this year.
So does this new vendor will cut the mobile phone market Nokia, Apple and Research In Motion the BlackBerry? Nokia until now leads in smart phone sales with a 38% market share, followed by RIM with 19% and Apple with 17%, according to research firm IDC.
So far the only computer company that made it into the Apple phone. Fujitsu and Panasonic has developed in the Japanese market, but just struggling to expand into overseas markets.
“Operators increasingly choosing what to include in their portfolios because they have much choice,” said Roberta Cozza, an analyst at research firm Gartner.
“Acer has been offering something truly innovative that really grab consumers’ attention.” Lanci acknowledge that Acer should spend the following year only to strengthen relationships with wireless operators.
Acer has Aymar de Lencquesaing, head of mobile products. Also in September 2008 Acer spent U.S. $ 275 million to acquire E-Ten Taiwan that provides engineers De Lencquesaing 100 smart phone makers. The group has since swelled to 200 people across Europe, Taipei and California.
Before making the prototype, the company surveyed 38,000 consumers in several continents about their desires. The study identified six consumer segments, including tech-savvy early adopters and people who use their phones primarily for messaging.
Acer sort profiles into two categories of features and price, and high performance that sold for U.S. $ 399 or more. Also the more affordable priced under U.S. $ 199. “We’re trying to keep cheaper Acer models and provide value to consumers,” added De Lencquesaing.
But tying the phone to the computer does not always make a phone Acer iPhone killer. Even in countries like Italy, where Acer is very popular. Gartner analysts said Cozza, it may take many years for consumers to look at Acer as a decent mobile phone brand.
But De Lencquesaing rejected. Next year, Acer will ship 50 million units, including computers, monitors and telephones. “Millions of customers will buy products. If we want to be a leader in mobile data, then we can not run away from smart phones,” said De Lencquesaing