--Acer lowers fourth-quarter shipment guidance

--Acer says Surface has "negatively impacted" PC ecosystem

(Adds background in the 2nd-4th, 7th-8th paragraphs, quotes from executives and analysts.)

 
   By Eva Dou

TAIPEI--Taiwan personal computer maker Acer Inc. (2353.TW) gave a grim outlook for the fourth quarter on Thursday, lowering its shipment forecast as it dialled down expectations that Microsoft Inc.'s (MSFT) new touch-controlled operating system would resuscitate sales.

The comments from Acer--the world's fourth-largest PC maker--came on the eve of Microsoft's launch of its latest Windows 8 software on Friday, serving as a reminder that much hinges on the new operating system's success to lure consumers back into stores.

Global PC shipments have fallen for the first time in over a decade, plunging more than 8% in the third quarter from a year earlier, according to industry researchers Gartner and IDC. A main reason is that consumers have been putting off computer purchases ahead of the release of Microsoft's Windows 8.

Taipei-based Acer has suffered particularly, as it hasn't diversified into growing sectors like tablet computers and smartphones as successfully as competitors like Lenovo Group Ltd. and Asustek Computer Inc., analysts say.

Just two years ago, Acer was seen as the most likely contender to unseat Hewlett-Packard Co. as the world's largest PC maker. But Acer saw its fortunes reverse last year: Stiff competition from mobile devices like Apple's iPad and mismanagement of inventories pushed the company into its first full-year net loss on record.

Recovery has been slow. Acer's earnings of NT$455 million in the first nine months of this year beat last year's loss, but 2012 is so far still the company's second-worst showing since it restructured to focus on own-brand products and quit contract manufacturing in 2001.

The company now says fourth-quarter shipments could at most rise 5% from the previous quarter, lowering its previous guidance of 5%-10% growth. If consumers are reluctant to take to Windows 8 or the global economy remains weak, Acer's shipments could instead fall as much as 5% from the third quarter.

Acer Chairman and CEO J.T. Wang criticized Microsoft at an investor conference Thursday for throwing its partners into disarray with its decision to launch its own Surface tablet, saying retail stores have been unwilling to take on much inventory from companies like Acer ahead of the launch of the Surface.

"This kind of uncertainty we have never encountered in the last 20 years," Mr. Wang said. "An industry leader competing with its partners is a very new situation....The uncertainty has really created a lot of negative impact on the ecosystem."

Touch-based devices are likely to make up 5%-8% of Acer's total shipments in the fourth quarter, it added.

Earlier this week, Acer posted a third-quarter net profit of 68 million New Taiwan dollars (US$2.3 million), sharply missing market expectations of more than NT$450 million because of poorer-than-expected sales and higher taxes. Acer also saw its third-quarter operating margin sink to a razor-thin 0.3% and guided for a similar number in the fourth quarter.

"The biggest challenge for Acer will be trying to change its low-brand image, and getting consumers interested in its higher-margin products," Yuanta Securities analyst Vincent Chen said.

Write to Eva Dou at eva.dou@dowjones.com

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