Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Hardware
DDoS Protection Powered By Verisign
Average Rating:
Rate this article:  
Why Apple Is Not To Blame for Acer CEO's Demise

Why Apple Is Not To Blame for Acer CEO's Demise
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"The issue for Acer from a competitive standpoint is that with the price of PCs and tablets and other components dropping so precipitously...we're seeing far better-known companies who sell products that are generally better reviewed than Acer's being extremely competitive in their own pricing," said analyst Charles King.
 


He's being called another victim of the iPad. J.T. Wang, chairman and CEO of Acer, has resigned his post in the wake of the company's consistently poor earnings reports.

Although Wang will still sit in the board chair role until next June, the search committee has already found his replacement: Corporate President Jim Wong will take the CEO reins on Jan. 1. Beyond the C-suite shake up, Acer's management team is also developing what it calls a "comprehensive restructuring plan."

"Acer encountered many complicated and harsh challenges in the past few years," Wang said. "With the consecutive poor financial results, it is time for me to hand over the responsibility to a new leadership team to pave the way for a new era. I feel optimistic toward Acer's future. The management team promises to carry out the internal restructuring and will work closely with the Board on the corporate transformation."

How Acer Lost Its Advantage

Can Acer make a comeback? Charles King, principal analyst at Pund-IT, told us nothing is impossible. But market dynamics have changed dramatically since Acer entered the picture with its extremely low-cost, budget-conscious netbooks.

"The issue for Acer from a competitive standpoint is that with the price of PCs and tablets and other components dropping so precipitously -- and the market for traditional PCs experiencing so much commotion -- we're seeing far better-known companies who sell products that are generally better reviewed than Acer's being extremely competitive in their own pricing," King said.

His point: If standard PCs and tablets were selling for several hundred dollars more today, being the low-cost leader would be a defensible position. When everybody is racing toward the bottom on pricing, he said, it makes it really tough on the vendors depending on low prices to bring them business.

"I saw a couple of headlines today suggesting Acer is being driven out of business by the iPad. I don't think the iPad was their biggest problem," King said. "I think the big problem was the corner of the market where Acer was standing alone is getting more and more crowded."

Acer's Restructuring Plan

Acer's board has set up a Transformation Advisory Committee with board member Stan Shih as chairman and Acer co-founder George Huang as executive secretary. The committee will propose changes in the company vision, strategy, and execution plans for the board's approval. To support the new development needs, the board has approved the issue of 136 million new common shares for a capital increase in cash.

"After making structural adjustments, we will introduce more competitive products within the existing PC, tablet, and smartphone business and stabilize our market share," Shih said. "This will be the basis of our transformation and for developing new business opportunities."

Acer's personnel and business restructuring plans include reducing manpower, product plan termination with related product tooling and legal fees, resulting in a one-time cost of $150 million which is expected to be reported in the fourth-quarter financial results. Acer will cut its worldwide employees by 7 percent, resulting in operating expense savings of $100 million annually from 2014.
 

Tell Us What You Think
Comment:

Name:

Mambisa:

Posted: 2013-11-05 @ 1:58pm PT
This year, the family bought a Dell, Gateway and Toshiba that were comparably priced with Acer and had better ratings and features. Between choosing a Dell or an Acer, I'm going to go with Dell and many buyers seem to be thinking the same about choosing another brand versus Acer when the price is comparable.



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Hardware
1.   Acer Desktop Box Rides Chrome Wave
2.   New Lenovo PCs for Business Users
3.   Price Wars Hitting Laptop Market?
4.   Have Net Routers Reached The Limit?
5.   Obama Boosts Government Tech


advertisement
Acer Desktop Box Rides Chrome Wave
Chromebox targets schools, small biz.
Average Rating:
Acer Chromebook Packed with Power
13-inch screen on under-$300 devices.
Average Rating:
Can Surface Pro Tablet Replace a PC?
Microsoft says yes with 12-inch Pro 3.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Three New Lenovo PCs Aimed at Business Users
Businesses everywhere want computing solutions that do more for less money, and Lenovo has unveiled three new desktop PCs that offer solid computing at a budget-minded price.
 
Aruba Networks Handles Black Hat with Aplomb
It's not an easy job. Aruba Networks' task throughout the Black Hat USA conference in Las Vegas this month was to ensure thousands of attendees could connect without malicious attacks.
 

Mobile Technology Spotlight
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 
Samsung, B&N Target Amazon with Nook Tablet
They've seen the enemy and it is Amazon. So Samsung and Barnes & Noble are teaming up to combat their common foe with a 7-inch tablet that blends Samsung’s tech, Nook’s content and e-reader platform.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.