Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • Networking
    • PC Hardware

    Acer, Lenovo Deals Just the Beginning?

    By
    Karen Schwartz
    -
    August 28, 2007
    Share
    Facebook
    Twitter
    Linkedin

      A rash of acquisitions and near-acquisitions by Asian PC manufacturers may signify that companies dedicated to design and development of low-end PCs have greater ambitions and are interested in moving up the food chain.

      In the past week, Taiwanese PC manufacturer Acer purchased U.S. PC manufacturer Gateway, while Chinese computer maker Lenovo is strongly rumored to be interested in purchasing hard disk drive manufacturer Seagate Technology, also based in the United States. Lenovo also has been long been rumored to have its eye Lexmark in an effort to enter the printer business with a bang.

      Although there is nothing in these acquisitions to show that Asian manufacturers are dissatisfied with simply providing low-end labor and assuming the design end of production, they do underline the idea that Asian companies see the potential in selling branded products and believe they can gain more global leverage through strategic purchases.

      “In the PC world, the Taiwanese have very mixed results in delivering branded solutions to the U.S.,” said Stephen Baker, vice president of industry analysis with The NPD Group Inc. of Herndon, Va. “While they have done it in the accessories and peripherals markets, at times they have also met with some failures,”

      That fact, combined with a desire to move away from entry-level brands into the higher-end market, was a major reason for Acer buying Gateway, Baker said.

      Thats also true of Lenovo.

      “Lenovo wanted to go from having the cheapest end of the market to saying they could make a machine thats just as good and popular as a Dell or HP machine,” said Douglas McIntyre, editor of 24/7 Wall St., a Web-based analytic publication focused on both domestic and global markets. “They believe they can get the best of both worlds.”

      Click here to read more about Acers acquisition of Gateway.

      In general, its a good move for Asian manufacturers to take a piece of the U.S. technology pie, McIntyre said.

      “Buying market share is probably the fastest way for these companies to pick up customers,” he said. “Basically, they have two choices: spend years trying to brand themselves into these markets, or buy into them by picking up some of the weaker players and reducing their costs significantly.”

      And the industry is likely to see more Asian companies buying U.S. technology manufacturers, said Roger Kay, president of Massachusetts-based Endpoint Technologies.

      “We are likely to see more of these types of deals, inasmuch as the U.S. government allows them to complete,” he said.

      Check out eWEEK.coms for the latest news in desktop and notebook computing.

      Karen Schwartz

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×