Financial Times FT.com

Acer says Vista delay is set to extend sales season

By Kathrin Hille in Taipei

Published: October 26 2006 02:11 | Last updated: October 26 2006 02:11

Pent-up demand for personal computers caused by the delayed launch of Microsoft’s new operating system is likely to extend the traditional peak season for PC sales well beyond Christmas, according to the chairman of Acer.

J T Wang on Wednesday indicated that PC demand was strong enough to drive Acer’s shipments up by 40 per cent quarter-on-quarter in the three months to December 31.

But he said that component shortages were severely constraining the industry’s ability to meet the demand and that therefore such a jump in shipments could not be realised.

“There is no inventory, neither in components nor in the channels. So we just ship what we can,” he said.

Acer is the fourth-largest computer company by shipments.

Repeated delays in the launch of Windows Vista have hit PC sales this year. Vista is now scheduled to be launched in early 2007.

Traditionally, PC sales show a sharp seasonal drop of up to 30 per cent after peaking about a week before Christmas.

“This year, PC sellers cannot afford to pack up and go on holiday,” Mr Wang said. “They’ll just have to keep selling.”

He predicted that PC sales would see no more than a 10 per cent slide after the holiday sales peak this year.

PC contract manufacturers have warned that shortages of components are limiting their ability to increase sales. The shortage of notebook battery packs since Sony’s recall of its lithium batteries is contributing to the problem.

Acer declined to give a more specific forecast for fourth-quarter shipments.

The group is due to report third-quarter results tomorrow. Acer said the Vista launch was expected to end consumers’ hesitation in buying new computers, which had held down the industry most of this year.

“2006 was not so good, but 2007 will be great,” Mr Wang said.

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