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Acer drops PC forecast based on tablet effect

updated 08:00 am EDT, Tue April 19, 2011

Acer PC sales slow as iPad gains traction

Acer has slashed its forecast for PC sales in the January to March quarter by 10 percent when it had previously forecast sales staying at the same level as the previous quarter. Although denying that this was the result of growth of the tablet sector, it remains a key challenge for the company. Set against this news is that Acer's reorganization at the top following the sudden departure of former CEO and President Gianfranco Lanci is complete.

Jim Wong, president of Acer's information technology products division has been promoted to the position of Acer president with the special responsibility of overseeing the growth of its mobile devices platforms. "Touch/mobile devices open up a host of new opportunities. They form Acer's new business and growth engine for the future," Wong said in a statement.

Acer has set Wong a stiff challenge by stating earlier this year that it aims to sell 6 million tablets in 2011. The Acer Iconia Tab A501 and Iconia Tab A100 will lead its tablet initiative. Both devices are powered by Android's tablet optimized Honeycomb OS, however, if the tepid reception to Motorola's vaunted Xoom tablet is any indication of its sales potential, it may struggle to come close to its stated sales target.

A large part of Acer's downturn has been its ongoing refusal to accept that the iPad could have any impact on its PC sales. A recent report by IDC had Apple blowing past Acer in overall market share, on the back of the iPad as well as the recently revamped Macbook Pro line.

Acer's shares have recently dipped as much as 18 percent on the back of its revised forecasts. Its new management team has a large battle on its hands to remain relevant and reclaim investor sentiment. [via Reuters]



By Electronista Staff
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