Print 25 comment(s) - last by mavricxx.. on Apr 4 at 4:53 PM

Will focus on increased profit margins instead of sales volumes

Now that Gianfranco Lanci is no longer the CEO and President of Acer Inc., the company can follow the vision of its board of directors -- by being more like Apple and HTC. 

Lanci's goal -- and, by extension, Acer's -- in the past was to sell more laptops than anyone else, including Hewlett Packard. Despite some successes, the strategy wasn't working for Acer's bottom line, with the company facing its second straight losing quarter. 

The rift in ideology caused Lanci to resign abruptly yesterday. According to Bloomberg BusinessWeek, Acer will name a new president -- one with experience in smartphones and tablets -- later this month. Company chairman, J.T. Wang, will fill the spot in the interim.

"For Acer, and other PC makers in general, the way to create value is to innovate and find new markets and opportunities, and that’s a big challenge," Simon Ye, a Gartner analyst, told Bloomberg. "Acer’s problem is that it is commonly perceived as a brand that competes on price, and that doesn’t help profitability." 

Acer's focus going forward is to maximize profitability instead of sheer sales volumes, spokesman Henry Wang told Bloomberg. This will require, among other things, an increase in spending on research and development.

Apple's business model is certainly one the Taiwanese company will be looking to emulate. According to Bloomberg, the iPad maker had a 21.5 percent profit margin in its last fiscal year, while Acer had a mere 2.3 percent. 

One major focus of the future is the tablet market, which has proven its worth over the last few quarters in particular. "There is good consensus among the board members that the tablet is the way to go," Acer CFO Tu Che-min told Bloomberg.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

who doesn't ?
By mforce on 4/1/2011 9:20:30 AM , Rating: 2
I think pretty much any company wants to be Apple and sell products at a premium price.
The thing is though, they really aren't Apple so they should try to do the best they can with what they've go and stop daydreaming.
HP is also trying to be Apple with their own WebOS and all but I'm not so sure they will succeed.
What I am sure though is that Acer won't be anything like Apple anytime soon.

RE: who doesn't ?
By spread on 4/1/2011 10:01:18 AM , Rating: 2
Apple might be a lot of things but they do offer quality feeling hardware for the money. Nice aluminum cases, great keyboards, higher quality screens in their products now with the IPS craze. Overall, they're products feel and look great like a luxury product should.

Meanwhile Acer is still trying to sell crappy plastic cases that creak with washed out screens.... for a premium?? I haven't seen any of their products that advance into Apple territory.

"We shipped it on Saturday. Then on Sunday, we rested." -- Steve Jobs on the iPad launch

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki