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Acer will not exit PC market: company founder

2015/11/12 18:06:20

Taipei, Nov. 12 (CNA) Stan Shih (施振榮), founder of Taiwan-based PC vendor Acer Inc. (宏碁), said his company will not exit the global PC market, but will continue its efforts to improve its operations to compete in the world stage.

Shih made the comment in response to a prediction by Tom Mainelli, an analyst with market information advisory firm International Data Corp. (IDC), who said earlier this month that Acer could be one of the six PC vendors in the lower half of the world's top 10 to drop out of the market.

According to Mainelli, the top four in the world PC market -- China's Lenovo Group Inc. (聯想), Hewlett-Packard Co., Dell Inc. and Apple Inc. of the United States -- are expected to gain a larger market share in the future.

However, two out of the lower half of the top 10, which include Acer, Taiwan's Asustek Computer Inc. (華碩), Japan's Toshiba Corp., South Korea's Samsung Electronics Co., China's Tsinghua Tongfang Co. (清華同方), and Japan's Fujitsu Corp., could bow out of the market, the IDC analyst said.

Shih told reporters in Taipei that although Acer is faced with escalating competition in the market and its operations remained under pressure, the company will try its best to take on any challenges ahead.

"Acer will not by any means exit from the market," the company's founder said.

Shih admitted that Acer has experienced delays in restructuring its business, but the company is determined to play catch-up and try hard to improve its organizational structure and efficiency and boost its competitive edge.

Shih said that he is certain that Acer's PC operations will move to a leaner workforce, adding that the PC division will no longer hire new employees to replace those who have left the company.

In the third quarter, Acer incurred NT$704 million in losses from its core business, but the PC vendor posted NT$191 million in net profit for the quarter on the back of earnings raked in from its non-core business.

For its part, Asustek CEO Jerry Shen (沈振來) said in an investor conference held on Wednesday that his company will not be the one to drop out of the PC market as Asustek has maintained the fourth-largest PC vendor position for some time.

Shen said that Asustek has faith that the brand will continue to exist in the market.

Asustek posted NT$422 million in net profit for the third quarter of this year, down 10 percent from a quarter earlier and also down 27 percent from a year earlier, due to approximately NT$2.3 billion in foreign exchange losses.

(By Pan Chi-i and Frances Huang)
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