The world No.3 PC vendor said that smaller, cheaper laptops are seeing significant growth from emerging markets, such as China and India, and as many consumers buy additional computers that can connect to the Internet for home and travel.

"The notebook market is growing for at least the next two to three years, and with the entry of new mobile internet devices, the market can easily double in size, changing the profile of the industry dramatically," Acer President Gianfranco Lanci told Reuters in an interview.

"I think all the major PC brands are getting ready to face the change and to manage the change," said Lanci.

Competing against Lenovo, Hewlett-Packard, and Dell Inc., Acer has expanded into fast-growing consumer markets, such as China, India, Russia, Latin America, and the Middle East, and Lanci said the firm could take up 16-18 percent of the global PC market by year end.

To diversify its product line, Acer launched a lightweight 9-inch Aspire One laptop on Tuesday during this year's Computex, the world's second largest computer show, following popular reception for such models from smaller local rival Asustek Computer.

Dell and HP are also expected to launch similar PCs in the second half of this year, and competition could soon heat up as more PC companies enter the race, analysts said.

Acer's Lanci said the company expects to sell 6-7 million units of Aspire One this year, priced at $399-$499, and 15-20 million units in 2009, as the global low-cost PC market looks set to hit 40-45 million units next year.

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