Acer Plans Full Server Line-up

Acer, claiming the right to the title of 'World’s Number 2 PC company", after overtaking Dell, says it plans to increase sales on more- profitable servers this year. According to the news release on Business Week, the company released blade and modular servers in November, the first move in its plans to offer a full line-up of servers by the end of this quarter.

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In a push to take on competitors like HP and Dell, Acer plans to boost its sales of profitable servers.

"Acer overtook Dell in the third quarter to become the world’s No. 2 PC company by offering low-cost Aspire One netbooks and higher-priced Ferrari-branded notebooks aimed at consumers. Servers, more powerful computers used to store information and manage networks, will account for around 4 percent of Acer’s sales this year and offer profit margins up to double that of its other products, Lanci said.

"'Maybe they expect the server segment will be booming in coming years and they want to join,' said Angela Hsiang, who rates Acer stock 'outperform' at KGI Securities Co. in Taipei. 'It will need some time. Because they didn’t do this product before, strong R&D capability is still needed.'"

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