By Ian Sherr

Acer Inc. needs a new ace in the hole.

For two years, Acer has relied on netbooks—tiny, stripped-down laptops—to propel growth. The Taiwan-based company’s products, especially its Aspire One, proved so popular, Acer vaulted over Dell Inc. to become the world’s second-largest computer maker by shipments behind Hewlett-Packard Co.

Now the netbook craze is petering out.

After tripling to $14.3 billion in 2009, netbook sales are expected to fall nearly 2% this year, according to data tracker International Data Corp. In 2011, the market is expected to shrink even further.

To read the rest of the story, either contact me directly or read more online at the WSJ: here. (subscription required)

(Originally published Oct. 20, 2010, on Dow Jones Newswires and WSJ.com.)