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Acer takes worse loss than thought as iPad effect deepens

updated 08:25 am EDT, Wed August 24, 2011

Acer Q2 2011 loses it 234m, won't break even

Acer on Tuesday posted a deeper than anticipated loss in the spring equal to $234.3 million and lowered its expectations for the year. The quarter was spun as a "correction period" as it had to clear out unsold stock and was paying severance deals for executives that had left in the company's mobile-focused shakeup, including former CEO Gianfranco Lanci. Chairman JT Wang added that, in spite of past promises, it would be "impossible" for the company to avoid a loss for the year as a whole.

The company's sales were being hurt by the European economy's broader problems. Wang argued that "more time and effort" was needed for Acer's reorganization around mobile. Its strategy, unveiled in spring after Lanci departed, would shift away from the emphasis on low-end notebooks and netbooks and towards tablets, smartphones, and higher-end notebooks.

Results would be better in the summer, but would still be in the red, according to Acer.

In spite of the results, Wang clung to his insistence that tablets were a fad. He saw the demand for them as a "fever" and that notebooks would eventually reclaim the limelight. He didn't predict when this shift would happen.

The chairman's statements came even as Acer's trust in this view of notebooks hasn't been rewarded. It continues to fall sharply in notebook share. Apple so far hasn't shown any signs of slowing tablet demand and doubled its iPad shipments in the same period. Unofficial data could see 14 million iPads delivered during the whole of the summer.



By Electronista Staff
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  1. BigMac2

    Forum Regular

    Joined: Dec 2000

    +12

    PC industry is falling

    PC industry is in really bad shape those days, the number 1 largest PC maker (HP) want to let go his PC division, and now it's number 2 to be in trouble.

  1. Lifeisabeach

    Fresh-Faced Recruit

    Joined: May 2010

    +14

    It's not just iPads

    Notebooks are still in high demand. It's just that it's the MacBook Air that's taken that spotlight, and Apple can't make enough to meet demand. These other guys really are just picking up Apple's crumbs at this point.

  1. Rolando_jose

    Fresh-Faced Recruit

    Joined: Jan 2006

    +15

    Tablets were a fad....

    If Moore's law is correct, tablets will get more processing speed, so the probability that notebooks will return to their previous position is a weed dream.

  1. facebook_Richard

    Via Facebook

    Joined: Aug 2011

    +13

    Bat s*** Crazy

    I cling to my regular assertion that this CEO is officially BAT s*** CRAZY!

  1. Bobfozz

    Fresh-Faced Recruit

    Joined: Jul 2008

    +9

    Denial...

    is not just a river in Egypt. Wishful thinking. The gravy train, big expensive buildings are over for the PC world. Apple said they couldn't make a netbook for $500. Instead they produced the iPAD, the much ridiculed (originally) hardware... now it's a big reality and I am sure there is more "stuff" coming.

  1. Foe Hammer

    Fresh-Faced Recruit

    Joined: Feb 2005

    +13

    You Should Never ...

    ... think with your Wang.

  1. Mr. Strat

    Junior Member

    Joined: Jan 2002

    +7

    Please go away

    When you make cheap, crappy stuff, you deserve to go out of business.

  1. Paul Huang

    Dedicated MacNNer

    Joined: Sep 1999

    +5

    Sum ting wang

    Acer = #2
    You want #2? Go to the toilet, please.

  1. tfmeehan

    Fresh-Faced Recruit

    Joined: Mar 2009

    +5

    Netbooks...

    were the fad.

  1. SockRolid

    Forum Regular

    Joined: Jan 2010

    +3

    Higher-end notebooks? Really?

    So, Acer wants to transition to high-end notebooks? The market segment that Apple completely owns?

    Mr. Wang wouldn't know quality if it crawled out of his pants. Good luck trying to match Apple's quality.

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