Acer founder says company needs an overhaul

By on Mar 30, 2011 at 3:27 PM
Business March 30, 2011

Acer founder Stan Shih on Tuesday said the company needs to overhaul its operations in order to stay competitive with the changing market. Shih’s comments, which were made at a National Culture and Arts Foundation event in Taiwan, were a response to news that Acer had lowered its first-quarter guidance. Acer said that declining demand in the U.S. and Europe due to the rapid growth of the consumer tablet market would result in a 10% drop in sales for the first quarter. Shih believes that Acer should overhaul its operations and focus on increasing profit margins rather than becoming a leader in the global PC market. Acer noted on Tuesday that its net profit margin is expected to drop below 2% in the first quarter from 2.93% in the previous quarter. Shih, who retired from his role as head of Acer in 2004 after founding the company in 1976 and building it into the largest computer company in Taiwan, said significant overhauls are commonplace at Acer. The company founder said that in the past, Acer has undergone an overhaul every 10 years or so in an effort to adapt to changes in the global market.

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  • Anonymous

    Advice to Acer: Invest your cash in Netflix, Amazon, Google, and Apple. You’ll get more than 2% back per year.

    • Bringit

      Well said Scary Face, well said.

    • Chut Pata

      With internet service provider putting a cap on bandwidth, streaming would ultimately become unaffordable. We will have to go back to something that would be to DVD, what DVD was to VHS, and VHS was to reel.

    • Rameses

      I say go for OEM, built it yourself PC which is more fun, cheaper and value for money.
      Re-investing is a better way of getting bigger returns. Even Asus make better product than
      Acer or for that matter Ben-Q their sister company.

  • Anonymous

    Are they going to stop making Craptops? Even HP has you beat in the low-end Laptop market.. I will never touch anything with ACER on it again.

  • Anonymous

    Just two years back Acer was flying high because of netbook sales. How much iPad has changed the landscape…

  • Chut Pata

    First, there were main-frame computers e.g. IBM-370, then the size got reduced and mini computers like IBM-3X came, before mid-range like AS/400. Then micro computers like Apple and IBM-PC came in. Then the size got reduced and laptops came in. Then the size got further reduced and netbooks came in. Now is the time of smallest of them all i.e. iPads and iPhones. None of the smaller and newer one eliminated the older and bigger ones. They just created their own market and took consumers who really wanted something smaller but settled for something better in its absence.

    Acer needs to hit the tablets and smartphone markets. Before they know, there would be smart watches which would be like micro smartphones

    • Anonymous

      A more important issue for Acer. They need to address the quality issue. Their laptops often falls apart shortly before the warranty expires, system overheat and ugly looking.

      You are moving toward the gateway gang.

  • http://twitter.com/homescrub homescrub

    Yeah you do. Until you can produce QUALITY products that won’t defect in 5 months, I will reconsider buying Acer. Maybe.

  • Anonymous

    Survival of the fittest.

    I give Acer 3 years before it’s bought for it’s assembly lines by someone.

  • http://twitter.com/estea estea

    My Acer Laptop’s motherboard died right after the warranty ended. Turns out that the model of my Acer’s laptop which is an Aspire 5100, ALL of them have the same motherboard overheat issue and Acer knows about this but doesn’t want to own up to it. Never gonna buy another shitty Acer product ever again. go to hell Acer !

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