To: John Rieman who wrote (33967 ) 6/22/1998 7:42:00 PM From: DiViT Respond to of 50808
More Acer.... Acer on track for 'non-PC' By John G. Spooner, PC Week Online and Margaret Kane, ZDNN 06.22.98 2:03 pm ET zdnet.com Acer America Corp. plans to introduce on Tuesday five new hardware platforms for non-PC devices ranging from mobile organizers and desktop e-mail systems to set-top boxes and video game machines. The devices, priced between $199 and $999, will use either X86 or MIPS processors running operating systems including DOS, Windows CE, Windows 98 and GUIs designed by Acer, of San Jose, Calif. Acer CEO Stan Shih first announced plans to develop this new class of XCs last year, citing a need for cheaper computing devices, particularly in overseas markets. At the time, he said the devices would cost as little as $200. The designs include Acer's X100 platform for mobile devices, the X200 for compact consumer electronic devices, the X300 for set-top boxes, the X500 for desktop applications, such as photo editing, and the X700 for multimedia computers or simple e-mail boxes. The X100 uses an integrated CPU and flash memory for storage and includes Fast IR (infrared), USB (Universal Serial Bus) and a serial port. The device will run Windows CE and offer Microsoft's Pocket applications, including Pocket Office and Internet Explorer 4.0. X700, aimed at desktop applications, such as video editing, includes an X86 processor. It supports PCI, AGP and USB buses, along with Fast IR, DVD (digital video disk) and two-dimensional and three-dimensional graphics hardware . Acer will license the platforms to third-party manufacturers and may also make some of the devices itself. The company has already begun test-marketing the devices in Taiwan; it plans to set up a separate division in the second half of this year to manufacture the platforms. The move may help Acer recapture profits it has lost to low-cost PCs. The company has struggled to stay competitive in the PC market and has also suffered from the Asian economic crisis, which has slowed growth in Taiwan, where parent company Acer Group is based. "For the overall [Acer] Group, the PC is still the primary business. The XC is a new market for us on top of the PC," Shih said. "XC is not trying to replace the PC," Shih said. Instead, he expects XCs to eventually increase PC sales by tapping into the market of people who don't own a PC now but have the potential to buy one in the future.