Acer to slow Microsoft focus while increasing Chromebook and Android production

Aug 8, 2013
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Acer has felt the squeeze brought on by ever-decreasing PC shipments, something that has affected more than a few companies. Eschewing PCs, consumers are gravitating in larger numbers towards mobile devices, particularly tablets, something that resulted in a poor second quarter for the company. In light of this, Acer's president stated that the company will be shifting its focus away from Microsoft products a bit.

Acer saw its second quarter operating margin drop 0.07-percent, and the company's President Jim Wang had some things to say about PC sales. "For the PC industry, I haven't seen light at the end of the tunnel. First, we have to sustain our market share and protect our bottom line ... by doing tablets and smartphones right, we can be prepared for the day after tomorrow."

As such, the company will be dialing back on its Microsoft-focused efforts and will instead be ramping up production of both Chromebooks and Android mobile devices. For the second quarter of 2013, Chromebooks made up nearly 3-percent of the company's shipments; the percentage that Android devices represented wasn't specified, however.

For 2013 in total, the Acer boss said it is expected Android devices and Chromebooks will represent between 10- and 12-percent of the company's revenue. That number is expected to grow in 2014, however, representing up to as much as 30-percent of the company's yearly revenue. Meanwhile, for Q3 of the year, mobile device growth could hit up to 5-percent.

At the end of the day, Acer says that "the Windows camp" needs to shake things up and reestablish itself in a new way that would make PC users confident in the company's offerings. For now, says the company head, those buyers are hesitating to invest in Microsoft products and are insteading waiting to see what options will be available to them.

SOURCE: Wall Street Journal


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