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Acer Loss, Move To Android "ASAP"

By Oonagh Reidy | Friday | 09/08/2013

Acer PC sales plunge, pledges to join Android bandwagon - citing Windows cracks.

Acer announces pitiful first half (1H 2013), with operating loss of $19.4m, profits of just $5.68m.  

Sales were down 20% to $6.02bn year on year for one of world biggest PC makers, who has suffered in the face of fierce competition from iPads, Android tablets which are cannibalising notebook, laptops  - traditionally Acer's core product. 

Acer blamed loss on increasing investments to strengthen industrial design capability, and declining gross margin following a hike in DRAM prices. 

Acer President said its plans to focus on Android based mobiles, tablets and Chromebooks asap, moving away from Windows, at an investor call yesterday. 

"We are trying to grow our non-Windows business as soon as possible," said President Jim Wang. 

"Android is very popular in smartphones and dominant in tablets...I also see a new market there for Chromebooks."

Acer also pledged to go hard on mobility, which it sees as driving the business "by doing tablets and smartphones right, we can be prepared for the day after tomorrow," Wang added.   

Android-based PC sales will account for 10%-12% of revenues by the end of this year, the PC maker predicts. 

"For the PC industry, I haven't seen light at the end of the tunnel."  

In Q2 alone, Acer posted a loss $11.39 m, while sales slipped a further 20%. 

Acer Chairman and CEO J.T. Wang also cited major cracks in Microsoft Windows OS, warning consumers are not buying Windows PCs following uncertainty. 

"The Windows camp has to do something to re-establish or reinforce confidence among PC users. People are reluctant (to buy) and are holding (off) their purchasing decisions." 

This is likely due in part, to the changeover to Windows 8 touch based OS and away from Microsoft's traditional interface, something which has caused huge upset in the industry.   

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