Acer CEO resigns as company hits rough patch

By on March 31, 2011 at 9:09 PM.

Acer CEO resigns as company hits rough patch

It appears as though Acer founder Stan Shih will get his wish, as news of CEO Gianfranco Lanci’s resignation could mark the start of a much needed overhaul. Shih, who retired from the company in 2004, said on Tuesday that Acer is in need of an overhaul and a shift in focus from being a leader in the PC market to increasing profit margins. On Thursday, Acer announced that¬†Lanci is resigning effective immediately, and company chairman J. T. Wang will step in as interim CEO until the company finds a suitable replacement. “The personal computer remains the core of our business,” said Wang in a statement. “We have built up a strong foundation and will continue to expand within, especially in the commercial PC segment. In addition, we are stepping into the new mobile device market, where we will invest cautiously and aim to become one of the leading players.” Wang continued, “In this new ICT industry, Acer needs a period of time for adjustment. With the spirit of entrepreneurship, we will face new challenges and look to the future with confidence.” More →

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Acer founder says company needs an overhaul

By on March 30, 2011 at 3:27 PM.

Acer founder says company needs an overhaul

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. More →

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