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The company said it expects its third quarter sales "to rise 20-25 per cent from the second quarter, heading into the all-important year-end holiday season".

The company also reaffirmed its target a day after Compal, the world's No. 2 contract maker of notebook PCs, lowered its 2008 sales forecast by up to 13 per cent, citing slowing demand in the United States and Europe.

One of Compal's major customers, Dell, the world's No. 2 PC seller, also warned at the end of last month, that "companies around the world were cutting technology spending".

Acer Chairman J.T. Wang has been quoted as saying the company could sell up to 7 million of its recently launched low-cost Aspire One PCs, a new category of Internet-friendly models aimed at developing markets and casual users, and adding that it could also sell as many as 15 million of the new units next year.

Acer has sold more than 1 million Aspire One computers and had previously targeted 5 million units this year, according to the Reuters report.