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Chrome makes up as much as 10% of Acer's US sales

Acer has been having a difficult time in the computer market over the last several quarters, and has posted consecutive annual losses. Acer also announced during its latest quarterly report that it had taken $120 million write-off due to the declining value of Gateway, Packard Bell, and eMachines-branded computers.

Despite these troubles, the company is touting strong sales of its Chromebooks that use Google’s Chrome OS, while still talking negatively about Windows 8.

Acer says that notebooks running Chrome OS account for 5 to 10% of its U.S. shipments since the machines were released here in November. Acer President Jim Wong said that he expects the ratio of Chrome sales to be sustainable in the long term. He also said that the company is considering offering additional Chrome OS models in other developed markets.

Acer C7 Chromebook

Acer and many other computer makers are looking for alternatives to the Windows operating system because consumers continue to stick with older versions of the operating system rather than upgrade to the latest version.

“Windows 8 itself is still not successful,” said Wong. “The whole market didn’t come back to growth after the Windows 8 launch, that’s a simple way to judge if it is successful or not.”
Wong criticized Windows 8 earlier this month alleging that Microsoft was getting marketing for its new operating system wrong.

Source: Bloomberg

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RE: Surprising
By 91TTZ on 1/29/2013 2:44:16 PM , Rating: 2
It's very likely that we'll have tablet hybrids displacing notebooks/desktops for 90% of the market, with docks and monitors for desktop use, and a few years later I can see PadFone type devices where smartphones become the only computing device. What else are we going to do with ever increasing mobile computing power? All things considered, I think MS has chosen a pretty optimal solution to the disruptive impact of mobile technology.

The problem is that they did not need to deal with it on their desktop operating system. They could have added the capabilities without making them the default, and they certainly shouldn't have forced users to adopt that style. Apple did not change OSX to become like iOS, they realized that iOS works best on the iPhone/iPad while OSX worked best on their desktops/laptops.

Microsoft made a tradeoff where one was not necessary. They tried to satisfy multiple market forces that were pulling in different directions and they made a bad tradeoff. They made another Pontiac Aztek. I remember when that thing was new how automotive press claimed how innovative the design was, how roomy and versatile it was, how it was a new trend in vehicles, etc. People hated it and it went down in history as being one of the worst car designs ever.

As far as mobile/tablets go, there's a lot of hype surrounding them right now because it's a new market that has enjoyed a high profit margin. People tend to extrapolate the growth trends and come to the conclusion that mobile devices will take over and become this huge cash crop. This will not happen. As in every new market, the rapid growth that occurs in the beginning eventually yields to slower sustainable growth. Products get cheaper and the profit margins dry up. Innovation slows as all products adopt the most useful features. The devices become a commodity.

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