Krishna Murthy

'This market segment is up 100% year-on-year and we are 350% ahead, says Acer General Manager Krishna Murthy, speaking during the Gitex 2004 computer show in Dubai.

'In Saudi Arabia we have 25% of the market and 19% in the UAE. Overall in the PC market we are now No 3.

'The big change came in May 2003. Before then we saw a suppression of demand in the marketplace from 9/11 to the end of the war in Iraq. This has now been leveraged further by the high oil price which has boosted cash flow and major projects in the region.'

However, Mr. Murthy still sees much room for increased demand for notebooks over the next two years. He points out that in Europe notebooks have 40% and desktops 60% of the marketplace compared with just 24% for laptops here, so there is room for much higher sales.

'We have 35 models of notebook ranging in price from Dhs2,800 to Dhs8,495. This ranges from the entry-level machine to the Ferarri model with the latest 64 bit AMD chip and excellent graphics capability. We also have the latest folio design style which offers a wide screen, as well as Tablet PCs.

'The huge quantity of notebooks that we sell brings us a large price advantage, and we have the lowest price structure in the industry. We are 4% lower on costs than any competitor and this allows us to make the best possible prices.'

Acer is certainly ambitious and the group's target is to double worldwide revenues from $5 billion to $10 billion by 2006 of which four to five per cent will come from the Middle East and Africa, and 70% from Europe, the Middle East and Africa.

The combination of value-for-money and a broad product range has won some notable contracts, such as 600 Tablet PCs for the College of Higher Education in Abu Dhabi. This included wireless access across the campus for all students.

'Of course, notebooks are not the only thing we sell,' adds Mr. Murthy. 'Aside from the Tablet PCs, we have commercial and home desktop PCs, digital entertainment centres and a full range of storage servers.

'Coming soon will be 26-inch and 32-inch LCD TVs, and a range of digital cameras. LCD TV is the future of television, and our TVs will bring costs tumbling down in this sector.'

It will be interesting to see if Acer can do for LCD TVs what it has achieved in the notebook market in bringing prices down to more affordable levels. Meanwhile, regional sales look set for further spectacular growth.