Chinese local brand manufacturer, Legend Group, which markets computers for both Apple Computer Inc and AST Research Inc is about to become a bigger force. It has just signed major deals with Acer Inc and SyQuest Technology Inc. Legend will assemble and market Acer’s rock-bottom, no frills $500 AcerBasic machine. Acer is in no doubt of Legend’s strength – The deal unites the two largest players from their respective sides of the Taiwan Strait, the company exulted, making it clear that when it comes to trade, for the Chinese, politics do not stand a chance. Legend looks to sell more than 100,000 of the computers in the first 12 months. The machine uses a television set as the monitor and runs Windows 3.1 on IBM Corp’s 100MHz 80486 clone. Acer estimates the third world-wide market for the AcerBasic could reach some 200 million units in the next seven years. And under the deal with Fremont, California-based SyQuest Technology, Legend is to form a joint venture company for the manufacture and distribution of SyQuest removable cartridge drives and cartridges in China. The joint venture will make the drives for China and for other markets, and will become a second source for SyQuest.
