Acer forms low-price PC team; but no budget yet

From Digitimes -

According to Scott Lin, Acer Taiwan president, his company has recently formed a team to begin working on projects for the low-price market segment. But, and it is a rather big but, Lin also said his company has not yet budgeted any R&D funds for the project.

Per Lin, the actual market for low-cost PCs has not been properly defined and that internally they are projecting 2008 global notebook shipments to reach 120 million units, with Asus's Eee PC accounting only for 2-3% share.

Acer also bought three Eee PCs for evaluations and found certain shortcomings. Likewise the company is still evaluating the popularity of Linux platform.

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2-3% of 120 million is 2.4 to 3.6 million units. At an average price of even just USD250, that is USD600M to 900M in annual sales for just one product line.