Acer aims for second rank in Indian PC market

DQW Bureau
05 Jul 2010
New Update


face="Times New Roman, serif">IT

vendor href="">Acer

has ambitions to reach the number two position in the

Indian PC market. S Rajendran, Chief Marketing Officer, Acer India

said, “Our aim is to reach the number two in the PC market in about

four to five quarters time. We are already at number three and so we

are being realistic in our goals and the time required meeting them.”

Acer had set up its India operations in September 1999 with a

manufacturing base in Pondicherry and is one of the youngest MNCs and

also among the top ten consumer brands in the country. “While

globally we are at number two in the PC market standing, in a short

span of time, we have reached the number three spot in India,” said


face="Times New Roman, serif">Aware

of the challenges to Acer attaining its number two goal, Rajendran

acknowledged, “The manufacturing requirement is large and often

there is a problem when it comes to fulfilling high demand.” One of

the important aspects of getting to its goal would be to have a

strong after sales network support set up. Acer has just that with a

network that extends across 450 towns in the country.

face="Times New Roman, serif">Recent

data from IDC highlighted Acer achieving number one status in the

desktops segment with 158,000 units in the JFM quarter of 2010 as

opposed to 153,500 units from HP. According to Rajendran, the

quarterly figures are a reflection of natural market forces. “We

saw a few aspects that led to sentiment inspired buying. One of this

was the arrival of Windows 7 as well as the newer processor

technology from Intel like the Core I series. One of the major

factors for us doing better than HP in this quarter was because of

our performance in the education segment of the desktop market.”

Acer is already present in one of two schools or one of three schools

in states like Tamil Nadu, Andhra Pradesh, Goa, Maharashtra, Gujarat,

Punjab, Madhya Pradesh, Uttar Pradesh and the North-East states. “Our

focus on schools and colleges is not slowing down and because of our

strong presence in the education segment we have been able to do well

in the desktops market. The education segment has been more insulated

against the recessionary effects as compared to other segments and

hence that has played out well for us,” said Rajendran. Institutes

like ICFAI, IITs as well as other engineering and management colleges

count among Acer's customers.


face="Times New Roman, serif">Rajendran

also gave further insight into the market trends. “In the consumer

retail segment, we have been strong in the BFSI and government

verticals. Some of the reasons for BFSI to invest in PCs were because

of branch expansion with many new branches as well as revamp of

existing infrastructure taking place. In the government space,

investment was driven by e-governance projects especially by state

size="3"> style="background: transparent none repeat scroll 0% 0%; -moz-background-clip: border; -moz-background-origin: padding; -moz-background-inline-policy: continuous;">For


in Gujarat, various citizen touchpoints with the government

have been computerized.
face="Times New Roman, serif">Around

45000 PCs have already been sold for these projects over the last

four to five quarters,” said Rajendran.

face="Times New Roman, serif">Highlighting

some of the company's strategies for the rest of the year,

Rajendran commented, “We will be looking to increase our focus on

the enterprise space and have already started reorganizing our

manpower from the top to the field level. We have around 83 Acer

Select partners for targeting the enterprise corporate customer and

plan to increase this to around 100 by March next year. In the second

half of the year, we will also up our focus on our server business

and increase our visibility there. We are also looking at other

product lines like TFTs and projectors. We are already number one in

the TFT segment as per JFM figures for this year. In projectors, we

are among the top five players with most of the buying coming from

the education, corporate and SMB sectors.”

face="Times New Roman, serif">Finally,

Rajendran while not sharing much on his expectations from the AMJ

quarter spoke about one major trend to expect from the JAS quarter of

the year. “Traditionally, JFM and JAS are stronger quarters

compared to AMJ and OND and for JAS we are expecting a lot of

movement in the PC market being attributed to the back to school

trend which results in a lot of PC purchases in the home and in the

education sector. Allied to that, we will be having some promotions

in association with Intel and Microsoft for our products,” signed

off Rajendran.