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The notebook specialist boasts the number four position in the worldwide computer market, but its dominance in Europe means it is having to look farther afield to keep up the phenomenal growth rates it has enjoyed over the past few years.

Announcing its first half financials, Acer's President Gianfranco Lanci highlighted more than $4bn in revenues and profits just shy of $140m - a year on year growth of 83.8 per cent.

Lanci put this down to Acer's commitment to the channel. 'Our business is 100 per cent indirect. That's not saying that indirect is better than direct. We believe you choose one or the other, but it's very difficult to do both at the same time.'

According to Acer, this is borne out by its figures which show HP and Lenovo (the erstwhile IBM's PC division) losing out on market share to Dell and Acer - indeed Lenovo lost around 5 per cent of the notebook market in Asia over a single quarter.

Acer's channel mantra has some key benefits, says Lanci. 'In the PC industry you need

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to look at your costs. The only way you can make money is to reduce the [operating expenses]. If you wait, hoping for some higher margin, you may well go under.' The channel model allows Acer to pass the margin problem on to the resellers, while it concentrates on running a company with ruthless efficiency - for example, despite Acer's rapid growth, staff numbers have dropped. 'Cost control, the business model, economies of scale are the key factors if you want to win,' says Lanci.

The strategy for the future marks Acer out as something of a goal-hanger. Its analysis of the European market has led it to believe the sales are headed East towards the accession states and Russia. Acer's senior corporate vice-president Walter Deppeler, highlighted the direct funding from the EU that has been made available to the new states as a potential market to corner. Similarly, he picked out the oil-rich countries of the Middle East as markets where there is a lot of disposable income. 'Oil-rich countries are spending on large educational programmes ... and there's strong consumer demand in UAE and Saudi Arabia,' he said. 'We still see a lot of turbulence in that world. It's a problem, but also an opportunity.'

But where Acer really needs to make inroads is in the US, particularly if it is to hit its goal of becoming the number 3 PC brand over the next two years. 'What is important is the growth in the US,' said Lanci. He said a drive in the US would focus on Acer's strength in notebooks. Lanci said he is confident the company 'can gain may be two or three positions in the next few quarters' in the US.