By Eva Dou and Aries Poon
TAIPEI--Taiwanese personal computer maker Acer Inc. (2353.TW)
plans to offer fewer Microsoft Inc. (MSFT) products and more
Chromebooks and Android-based mobile devices from now on, after
slipping into a surprise net loss in the second quarter due to
lower sales and rising expenses.
"We are trying to grow our non-Windows business as soon as
possible," President Jim Wang told investors at a conference call.
"Android is very popular in smartphones and dominant in tablets...I
also see a new market there for Chromebooks."
Acer, the world's fourth-largest PC maker by shipments, has been
hit particularly hard by the seismic shift in the industry from
laptops toward mobile devices like smartphones and tablets. The
company announced last year a makeover effort to attain a more
high-end image, but the resulting increase in industrial design and
marketing spending has made profitability challenging at a time
when global demand for PCs is falling.
Mr. Wang said Android devices--including smartphones, tablets
and Chromebooks--will likely contribute 10%-12% of Acer's revenue
by the end of this year, and may grow up to 30% in 2014. The rest
of revenue will come from devices running Windows operating
system.
He didn't say how much revenue in the second quarter came from
Android devices, but said that Chromebooks comprised close to 3% of
Acer's shipments in the second quarter.
At the same call, Chairman J.T. Wang added, "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."
Both the President and Chairman declined to say what kind and
level of support Google Inc. (GOOG) and Microsoft are offering Acer
for it to shift its portfolio-mix.
President Jim Wang also said, for the current quarter ending
Sept. 30, Acer's mobile device shipments--including notebook PCs,
tablets and smartphones--may register on-quarter growth of between
zero and 5%.
"For the PC industry, I haven't seen light at the end of the
tunnel," he said. "First, we have to sustain our market share and
protect our bottom line...and by doing tablets and smartphones
right, we can be prepared for the day after tomorrow."
Acer on Wednesday posted a net loss of 343 million New Taiwan
dollars (US$11.4 million) for the second quarter, compared to a net
profit of NT$56 million a year earlier. A median forecast of 16
analysts polled earlier by Thomson ONE Analytics was for a net
profit of NT$206.07 million.
Revenue in the second quarter also slid, while operating margin
was minus-0.7%, compared to 0.03% in the first quarter and 0.4% in
the second quarter of 2012.
Write to Eva Dou at eva.dou@wsj.com
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