Acer, Ferrari unveil joint smartphone model

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HELSINKI | Fri Nov 12, 2010 12:15pm EST

(Reuters) - Ferrari and Acer unveiled on Friday a joint new smartphone model using Google's Android software, hoping to boost its so far limited role in the increasingly crowded smartphone market.

The version of Acer's Liquid model -- with production limited to 200,000 -- will be Ferrari branded and sold with pre-loaded content from the company and its racing team.

"The Ferrari branded device will help lift Acer's latest phone above the ever-crowded Android devices market where it is hard to tell many of the lower cost products apart," said Ben Wood, head of research at British consultancy CCS Insight.

The world's second largest PC vendor Acer entered the smartphone industry last year, aiming to reach 6 to 7 percent of the market in three to five years.

Its success has so far been very limited, but handset vendors are closely watching the PC vendors move into their marketplace.

"Acer had a devastating effect on the notebook market and has been the thorn in Dell and HP's side. Its low cost, low margin approach accelerated commoditization in the notebook market and mobile phone makers are watching its entry into the segment closely," said Wood.

(Reporting by Tarmo Virki; Editing by Jon Loades-Carter)

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