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Wednesday, 24 August 2011 11:41

Acer gutted

Written by Nick Farell
acer

They should never have fired that nice Italian
Acer is looking pretty stupid this year after it fired Gianfranco Lanci for the crime of not copying Steve Jobs.

Acer gave Lanci his marching orders after he dared to say that that Tablets were an Apple thing and people were not going to make money out of them. However it turns out that Lanci was completely right and while he expected trouble ahead for the outfit, thanks to a downturn in the PC industry, he did not think a half-arsed move into tablets would solve the problem.

As a result Acer has reported a worse-than-expected quarterly loss, the first in company history. It has been hurt by charges for an inventory write-off and reorganization which it did not need to have to fix the mobile problem. It now says that it would be impossible to break even for the full year and that is assuming that mobiles and tablets take off after all.

Acer has been a dominant force in the PC business, particularly in the low-cost notebook segment. It is this very segment which if marketed properly could have saved the outfit as Europeans looked for cheaper gear as their economy tanks. Instead Acer has committed itself to flogging expensive tablets which only the rich and stupid think are a good idea and end up being expensive tea-trays.

The world's No.2 PC vendor posted a net loss of $234.3 million in April-June, much worse than the consensus forecast of a T$3.3 billion loss from six analysts polled by Reuters. To make matters worse, Acer made efforts to further downsize channel inventory due to stagnant European and U.S. economies, and the slow PC market.

So in the areas where it could make money, it can't. It is also cutting 300 jobs in the EU which, if is going to buy a PC at all, will want the cheap stuff that Acer flogs. Chairman J.T. Wang told a subsequent investor briefing that Acer will still see a loss in the third quarter, though it would be better than the second quarter.

Acer real hope might be that it might benefit from rival HP's plan to spin off its PC business. Unfortunately the region that it might scoop up the most cost from that silly decision is Europe where it has just downsized its operation.

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Comments  

 
-7 #1 Warrior24_7 2011-08-24 12:08
Apple is to the PC what Godzilla was to Tokyo! :lol:

http://www.filmforum.org/films/toho/TokyoSOS05.jpg
 
 
-2 #2 JAB Creations 2011-08-24 16:09
Copying doesn't lead to success most of the time.

If Acer (or anyone else for that matter) wants to increase sales get a couple cheap SSD's and stick them in to RAID 0 for booting, clean out the horror-story of useless crap out of Windows 7 (or simply install Linux and save $30? is it on the license) and sell a cheaper/faster computer.

Success is merely the bridge that others are merely unaware or indifferent to that joins need and action.
 
 
-3 #3 Warrior24_7 2011-08-24 16:41
I would agree, but I can't. Linux doesn't sell. Walmart offered Linux based PCs a few years ago and they tanked...badly. Walmart released a statement basically saying "this IS NOT what our customers wanted". I just purchased the best HD3D monitor on the market in the Acer HN274H bmiiid. I should've waited if they're going the way of HP. I could've saved alot of money. Oh well.
 
 
+1 #4 Marburg_U 2011-08-24 22:07
What currency are we talking about in this article?
 
 
0 #5 Abdussamad 2011-08-26 11:30
Yeah running a multinational company on a 2% profit margin wasn't exactly the brightest idea.
 
 
0 #6 youserzero 2011-08-26 13:30
Quoting Warrior24_7:
I would agree, but I can't. Linux doesn't sell.


Oh but it does. You are just ignorant, as many others have pointed out before me!

http://www.linuxcertified.com/linux_laptops.html

http://www.system76.com/index.php?cPath=28


Quoting Warrior24_7:
Walmart released a statement basically saying "this IS NOT what our customers wanted".


Yeah sure they did...
 
 
-1 #7 Warrior24_7 2011-08-26 16:00
Quoting youserzero:
Oh but it does. You are just ignorant, as many others have pointed out before me!

http://www.linuxcertified.com/linux_laptops.html

http://www.system76.com/index.php?cPath=28



Quoting Warrior24_7:
Walmart released a statement basically saying "this IS NOT what our customers wanted".


Quote:
Yeah sure they did...



ssssSSSMACK!! :o *sigh* There is no better feeling than delivering a fresh b!tch slap to start your day!

http://www.qj.net/qjnet/mobile/experiment-failed-wal-mart-to-stop-selling-linux-computers-through-retail.html

"This really wasn't what our customers were looking for," said Wal-Mart's spokesperson Melissa O'Brien.
 
 
0 #8 bardenck 2011-08-26 16:12
Quoting Warrior24_7:
Apple is to the PC what Godzilla was to Tokyo! :lol:

http://www.filmforum.org/films/toho/TokyoSOS05.jpg



a fictional character that did no harm to the actual city of tokyo? then yes, perfect analogy.
 
 
0 #9 youserzero 2011-08-26 23:32
Quoting Warrior24_7:
"This really wasn't what our customers were looking for," said Wal-Mart's spokesperson Melissa O'Brien.


Hmmm, you should probably read that link a little closer. It says they only encountered a problem in the retail store, where online they sold well.

"Realizing that selling Linux-based computers via brick-and-mortar stores just isn't as effective as distributing them through online sales, retail giant"

Obviously somebody wants them. I call your smackdown and raise you a double jab followed up with a right cross to the face!
 
 
-1 #10 Warrior24_7 2011-08-27 02:27
Quoting youserzero:
Obviously somebody wants them. I call your smackdown and raise you a double jab followed up with a right cross to the face!


I read it before you did. What did I say? They didn't sell well and they didn't! Walmart said thats not what the customer wanted...it isn't! You said otherwise and were b!tch slapped! I hate see you beat yourself up like that with jabs and right crosses, but you don't call yourself a zero for nothing. You can order just about ANY PC thru Walmart online including Alienware, ibuypower, cyberpower ect! The latter two didn't sell well either and were removed too. Somebody wants them, "everybody" doesn't. Now let me get a full, arching extension... ssssssSSSSMMMAA CK!!!
 

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