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May 18, 2009

Acer overhauls Dell as the second largest notebook maker

Gateway acquisition opens door

By CBR Staff Writer

Acer has replaced Dell to become the second largest manufacturer of the notebooks following the acquisition of Gateway Inc. The acquisition has increased the customer base for Acer in the US and Europe market.

The acquisition helped Acer to leave behind Lenovo Group and also to strengthen its position by receiving European Union approval to buy Packard Bell BV., Bloomberg reported.

Acer owns a market share of 16% with the shipment of 5.25m notebooks, while Hewlett-Packard leads with 20% market share. Dell stood at third place by shipping 4.64m, or 14% market share.

Arthur Hsieh, analyst at UBS AG, said: “Acer is improving its competitiveness and is pretty fast in introducing new models, while Dell still has its own issues to deal with.”

Dell discontinued its two-decade strategy of selling directly to consumers and started selling through retail outlets which did not receive much response from customers, analysts reported.

In 2009, Acer lost 14% in its shares value, while Dell lost 20% and Hewlett-Packard 4%.

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