Acer confirms Saudi assembly

Acer has confirmed its intention to launch a PC assembly operation in Saudi Arabia. The decision puts Acer on a level footing with HP, which opened a Saudi assembly line last year.

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By  Stuart Wilson Published  February 22, 2005

Acer has confirmed its intention to launch a PC assembly operation in Saudi Arabia. The decision, taken after an extensive feasibility study to assess the viability of a facility, puts Acer on a level footing with HP, which opened a Saudi assembly line last year. Krishna Murthy, general manager at Acer Middle East, confirmed the plan had been given the go-ahead. With HP already operating an assembly line and Acer following suit, a third A-brand vendor is also mulling over the possibility of launching a PC production facility in the Kingdom. Desktops and laptops assembled locally in Saudi Arabia are exempt from 5% duty making them highly competitive in terms of price. The government led ‘PCs for Homes’ initiative in the Kingdom is one factor tempting vendors to set up assembly in operations in Saudi Arabia. That scheme has an ambitious target of shifting one million PCs during a five-year period, with vendors assembling locally expected to fare well during the supplier tendering process. Acer has already established a strong position in the Saudi market. During 2004, Acer took 26.6% of the Saudi notebook sector and 18.4% of the combined market for both the desktop and notebook form factor. “The last 12 months have been a defining year for Acer in the Middle East,” said Emanuele Accolla, VP EMEA at Acer. “We have consistently taken market share away from our competitors across all areas of the business and have dominated the notebook sector in the region, to the extent that in Saudi Arabia alone we have been the number one notebook supplier for the last 15 months.” While Acer has consolidated its position as a top-tier vendor across the Middle East, the PC market remains fiercely competitive with price erosion expected to reduce average selling prices even further during 2005. “While other vendors introduce temporary price cuts in an attempt to gain market share, Acer offers customers the latest technology at prices, which are always affordable,” concluded Murthy.

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