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Acer Replaces Dell as World's Number-Two PC Maker

Acer replaced Dell as the world's number-two PC maker in the third quarter as notebooks helped PC makers recover from the economic downturn. Hewlett-Packard remained the market leader with a 20 percent share, with Acer's share at 13.4 percent. Acer's advance reflects the rise of Asia in the computer industry, fueled by aggressive pricing.Taiwan-based Acer displaced Dell  as the world's number-two PC maker in the third quarter, according to iSuppli. The changing in ranking represents the first time an Asian original equipment manufacturer (OEM) has captured the number-two slot in global PC shipments on a quarterly basis, the research firm said.

Acer's PC shipments soared 31 percent from the previous quarter and 16.6 percent year over year. Moreover, the company's share of worldwide PC shipments amounted to 13.4 percent in the third quarter -- up from 11.6 percent from the year-earlier period, according to Matthew Wilkins, a principal analyst at iSuppli.

"Acer's rise to the number-two rank in the global PC business reflects not only its strong performance  in the notebook  segment, but also the historic rise of Asia as a primary force in the computer industry," Wilkins said.

Embracing Netbooks

Asia's growing clout also was demonstrated by China-based Lenovo, which saw its third-quarter PC shipments rise 17.2 percent year over year. "The Asian manufacturers are a growing force in the global PC business due to their aggressive pricing, along with their ability to quickly react and embrace new developments, such as the netbook PC," Wilkins said.

Lenovo saw year-over-year growth of 36 percent from its notebook products, which was among the highest growth numbers posted by the top 10 OEMs in the quarter, Wilkins observed.

"They were second only to Samsung in terms of year-over-year growth, but we have to be careful here because Samsung's absolute number was far smaller," Wilkins said. "Apple's year-over-year notebook growth was around 35 percent."

Acer has been reaping rewards from its continued aggressive pricing strategy, strong netbook shipments, and robust regional performances in Europe and the United States. The company's notebook shipments -- which represent somewhere in the region of 30 percent of the company's product mix -- rose 17 percent compared to the same period in 2008 and 28 percent from the previous quarter, Wilkins observed.

"Acer is also doing very well in netbooks, which are contributing to the increase in shipments," Wilkins added.

A Market Resurgence

U.S.-based Hewlett-Packard  comfortably maintained its number-one ranking by growing its shipments seven percent to 15.9 million units in the third quarter, which was good enough for a 20 percent market share. But Dell saw its third-quarter shipments decline to 10.3 million units -- down 5.9 percent from 10.99 million in the year-ago quarter.
 
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"Dell did well in consumer PCs with double-digit growth, which is very good, but the commercial sector is still proving difficult for them," Wilkins said.

For the overall market, unit shipments rose on a year-over-year basis for the first time since the fourth quarter of last year. Even better, PC shipments increased at the highest sequential rate since iSuppli began tracking the market in 2003, Wilkins observed.

Third-quarter PC shipments on a global basis amounted to 79.9 million units -- a 1.1 percent year-over-year increase and a 19 percent surge from the previous three months. Wilkins said the increases show the PC industry has finally emerged from the worst economic downturn since the Great Depression and has begun to grow again.

"Notebook PCs were critical in driving growth on both a sequential and a year-over-year basis," Wilkins said. "This is a testament to the high value that consumers and businesses place on their mobile computing  platforms."

Looking ahead, Wilkins said global PC market conditions appear likely to remain strong in the fourth quarter. "With the start of the Christmas buying season and the arrival of Microsoft 's Windows  7 operating system, the fourth quarter is likely to bring more good news for PC makers," Wilkins said.