Acer President Jim Wong said the Taiwan-based company plans to release an "ultrabook" this year, joining Asus as the first PC makers to commit to systems based on Intel's vision of an ultra thin notebook with tablet features.

Wong said in a statement that "the ultrabook can help revive the notebook market," which is suffering from slower consumer sales due to, among other things, the rise of the iPad and other tablets.

Wong did not give any details about the Acer ultrabook, though he did says the device will be available in the fourth quarter.
Intel Corp. (INTC) is promoting a new type of thinner and lighter mobile computer called an ultrabook in a bid to challenge the growing dominance of Apple Inc. (AAPL)'s iPad and other tablets.Intel's processors run more than 80 percent of the world's PCs but most tablets are running on non-Intel chips. PC sales have slowed down while tablet sales soared.

To revive the PC industry's dominance, Intel is pushing for the ultrabook. Intel aims to convert 40 percent of consumer laptops to the new category by the end of 2012.

"These computers will marry the performance and capabilities of today's laptops with tablet-like features and deliver a highly responsive and secure experience, in a thin, light and elegant design. The Ultrabook will be shaped by Moore's Law and silicon technology in the same way they have shaped the traditional PC for the past 40 years."

Intel Executive Vice President Sean Maloney, in his presentation at the Computex trade show in Taiwan, provided these details on the Ultrabook:
* Less than 20mm (0.8 inch) thick,
* Tablet-style features such as touchscreens and the ability to start up quickly to let users call up websites without waiting,
* Days of battery life on standby,
* Mainstream pricing under US$1,000, and
* Arrival in three key phases, with the initial batch available during 2011 winter holiday shopping season.

"There'll be some confusion if you look at the fold factor; when you open it you'll see a PC but if you're on the go, just fold it and suddenly it's a tablet," Intel's vice president Sean Maloney said. "Is it a PC? Is it a tablet? I think it doesn't matter."

ASUS, Acer's Asian rival, has already announced that it will release that UX21 Ultrabook by the end of the year. ASUS said the "astonishingly thin" ultraportables are made possible through the use of a strong but light aluminum alloy shell with a unique 'spun' finish on polished surfaces.

Desktop computers and laptops continue to outsell tablets. Last year, nearly 18 million tablets were shipped, with Apple's iPad accounting for nearly 83 percent of the market. More than 346 million personal computers were shipped in 2010. Jefferies & Co., however, projects that 70 million tablets will be sold this year, with the total expected to increase to 246 million in three years.

Acer vs. HP

Market researcher Gartner Inc. said last week that in the first quarter, Hewlett Packard continued to dominate the Australian PC market with 21.6 percent market share. Acer is second with a 14.9 percent market share. Dell is third with 12.8 percent. Apple continues to register strong growth in Australia, retaining its fourth place ranking ahead of China-based Lenovo for four quarters. HP was the only other leading vendor that experienced positive growth in the first quarter of 2011.

Gartner said the Australian PC market grew 2.8 percent in the first quarter of 2011 over the same period last year. The combined shipments of desk-based and mobile PCs in Australia totalled over 1.4 million units in the first quarter of 2011, which was down a little over the fourth quarter of 2010 (0.2 percent decrease).

"Given the very high PC saturated market in Australia, 2.8 percent is solid growth, making it one of the leading mature markets driving PC growth in Asia Pacific," said Eileen He, research analyst at Gartner.

The increasing popularity of mobile PCs in Australia has driven PC market growth over the past year, with mobile PC shipments increasing 7.6 percent since the first quarter of 2010.

Crowded marketplace

Not only Intel is trying to bring a new product category to the already crowded and saturated marketplace. Google Inc. announced that laptop computers running on search giant's Chrome operating-system software will go on sale June 15. The first Chromebooks will be released by Samsung and Acer. The Acer 11.6-inch Chromebook will go on sale for $349.

Chromebooks, which has a low cost and Web-centric platform,have these features:

* Booting and opening browser to take only "seconds";
* Lasts a day of use on a single charge, for a longer battery life than a full notebook;
* Optional 3G;
* Layers of security built in, making anti-virus software unnecessary;
* Core of each Chromebook is the Chrome web browser.
* Runs on the Chrome operating system;
* Has own software for word processing and other tasks similar to Microsoft's Office suite; and
* Units to be sold at between $350 and $500 each.

Google hopes to revolutionize mobile computing and free users from the difficulties of the traditional PC experience with the Chromebook.

Acer investing in Ultrabook and Chromebook

Acer Inc., which ranks second to Hewlett Packard for total PCs and notebooks, in the first quarter announced that revenues reached NT$127.8B (US$4.34B) representing 14.3 percent decline quarter on quarter (QOQ) or 11.5 percent decline assessed in US currency.
In April, Acer said it expects second quarter PC shipments will decline by approximately 10 percent from the previous quarter. It said that the recent company reorganization, inventory adjustment and the seasonal slow-down of the PC industry in Q2 are the main factors for Acer's decline in PC shipments.

With its investments in new product lines Ultrabook and the Chromebook, which are scheduled for release later in the year, Acer should see better results. But can it outsell HP in Australia? We'll have to wait and see.