No 3 PC brand Acer moves into the smart phone market

In an indication of the future convergence of computers and mobile phones, Taiwan-based computer manufacturer Acer, the third largest in the world, announced a foray into the mobile phone market on Monday, unveiling a range of high-end handsets at an industry event in Barcelona.

The group, best known for its laptops, plans to put four handsets on sale worldwide in March or April with the initial range ultimately set to number 10, said marketing manager Sylvia Pan at Mobile World Congress.

The touch-screen phones, demonstrated here mostly in black with a design that resembles the top-selling Apple iPhone, will connect to the Internet via a Wi-Fi connection and high-speed mobile network.
The first Acer models will be called DX900, X960, M900 and F900.

The company is aiming to get 10 per cent of its revenue within three years from this new product line. Acer spokeswoman Stella Chou gave the sales target, but would not provide more specifics. The company's new smart phones will be rolled out in 12 countries first, and will be later expanded to include other territories.

The move illustrates two trends in the mobile phone industry - the growing attractiveness of the high-end market for "smart phones" and the arrival of traditional laptop computer makers in this segment. Laptop maker Toshiba already manufactures handsets and rumours abound that US rival Dell is preparing to launch a range of sophisticated smart phones enabling users to surf the Internet, send emails or watch videos. (See: Dell may foray into smart phones)

Group chairman JT Wang said Acer hopes to distinguish its product by making it well integrated with its other products. He said smart phones could one day surpass notebook PCs as a way for consumers to access the Internet. "If we don't enter the market, then the cellphone makers will enter our market within three years," he said.

Sales of mobile handsets are set to fall this year for the first time according to market research group Gartner, but demand for high-end phones is set to increase.