Acer Deems 2011 "Impossible" Year for Profit

Acer Deems 2011 "Impossible" Year for Profit

Last year, Acer was the second largest PC-maker in the world, right behind HP, who recently declared that they are giving up the jostle for hardware profits.

This year, they are the fourth largest, behind Dell and Lenovo, who overtook the Taiwanese manufacturer.

Unfortunately for them, this is also the year they posted their first loss in almost 10 years, prompting Acer to cut jobs and take losses on products held in storage.

According to Bloomberg, Acer's "low-price, high-volume" strategy is not doing them any favors here, with stiff competition from Apple's iPad, and low sales volumes of their own tablets.

Bloomberg also quoted Acer's Chairman J.T. Wang downplaying the impact tablets have on the PC market.

But perhaps Acer is also sensing the demise of PCs, because they have just splashed out S$320 million on iGware Inc., a cloud computing firm., in a bid to get into the cloud business.

At least they aren't giving up the fight for PC profits, because now that HP is bowing out, Acer has a chance to be in third place.

To read more, click here. (Via Bloomberg, Business Week)

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