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Acer still shrinking PC orders, won't pick up 'til September

updated 07:50 am EDT, Thu August 11, 2011

Acer continues shift to mobile to counter iPad

Acer continues to reduce its orders for traditional PC notebook parts through August as it continues to struggle in the face of the iPad effect. According to Digitimes Taiwanese supply chain sources, Acer is unlikely to boost parts orders until September. In particular, its once popular netbooks have lost any sales momentum, while it continues to realign its growth strategy around its Iconia Android-powered tablet range.

IDC sales data from Q4 2010 showed that the iPad had cut dramatically into Acer's sales during the fall last year. During this period, its overall market share dropped from 15 percent to 10.6 percent. The same pattern continued through Q1 2011, with IDC data again showing that Acer's slow response to address the new tablet segment spawned by Apple. This resulted in its PC shipments plummeting by 42.1 percent for the same period year over year.

Dumped Acer CEO Gianfranco Lanci had pinned Acer's dramatic sales slump on its refusal to hire more foreign engineers to help develop an iPad competitor. Perhaps an indication of the mindset that Lanci was faced with at Acer was expressed in recent comments by Acer's founder Stan Shih who restated his position that tablets are a temporary fad.

Regardless of whether Acer's current management agrees with its founder's position, it is now putting considerable energy into the tablet segment with its Iconia range of tablets. Starting in August, Acer is expected to increase its tablet shipments from 700,000 to 800,000 units in Q2 to 800,000 to 900,000 units in Q3.

Acer's short to medium term goal is to reach annual tablet shipments of 2.5 to 3 million units, which it hopes will reverse its declining fortunes over the past twelve months. The has also just announced its first entry into to the smartphone segment will begin shipping this September.



By Electronista Staff
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Comments

  1. ElectroTech

    Junior Member

    Joined: Nov 2008

    +3

    More Blood on the iPad

    We can't seem to say much else these days. Apple products seem to be killing off the rest of the computer industry with their market leading innovations.

  1. macnnoel

    Fresh-Faced Recruit

    Joined: Feb 2005

    +1

    @ElectroTech

    Apple is not killing the industry as much as the industry thinks copying Apple is the best way to make money.

    The other companies have the money, but have no idea what the customer wants. They know what the geeks want (more power, more customization, more control, open, specs, etc). Just listen to the marketing speak for non-Apple products.

    The industry deserves what it gets for being comfortable at being mee-too for so long.

  1. iphonerulez

    Dedicated MacNNer

    Joined: Nov 2008

    +1

    Killing off the Windows netbook

    was likely the easiest thing in the world. It was just a crappy platform that was only encouraged by die-hard Wintards. The processors were weak, the displays were lousy junk and the cases were the cheapest plastics you could use. Why anyone in their right mind would purchase some cheap c*** computer like that is beyond me. I'm sure that most companies didn't even want to sell them, but I guess they had to compete to get sales. Whatever on earth started consumers into buying them must have been due to the poor economy. Acer better get its stuff together and start building some halfway decent ultrabooks or something. The Windows netbook is dead and will probably stay that way unless Microsoft works some magic with Windows 8 and reduces the footprint so that it will easily run on underpowered computers. It appears the days of the $250 notebook computer is at an end.

    Windows computer vendors trying to copy Apple are really killing themselves. They're not targeting Apple-type consumers when a company is happy pushing out cheap junk to cheapskates. Companies need to build quality products and to do so costs extra money. So does good customer service.

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