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Acer, Asustek will not decline in global PC market

  • Author:Abby
  • Release on:2015-11-16

In response to IDC forecasts that two of the top-10 international PC vendors will withdraw from the global PC market over the next two years due to unbearable operating losses and the two are possibly Acer, Asustek Computer, Toshiba, Samsung Electronics, Tsinghua Tongfang, or Fujitsu, Acer founder Stan Shih said that Acer and Asustek will not die due to lower overheads compared to other vendors.

Acer achieved net profits of NT$191 million (US$5.84 million) and EPS of NT$0.06 for the third quarter and the results were a lot higher than those of the previous quarter mainly due to an exchange income of NT$799 million.

Shih noted that Acer's third-quarter profits were seriously impacted by competitors' buy-two-get-one-free promotions and Acer also chose to focus on digesting inventory in the quarter, knowing it would gain profits from exchange rates.

Shih pointed out that Lenovo is currently trying to push its notebook shipments and market share, but such a strategy is at the expense of the company's profitability. Acer used to adopt a similar strategy, but the price is too high and with the notebook market shrinking, such a strategy is not necessary, Shih said.

Shih said that Asustek suffered exchange losses in the third quarter because of Brazil and Russia's exchange rate fluctuations. Since Asustek is capable of bearing the losses, the company is seeing no trouble continuing to expand its market share in both markets, but Acer is not able to play the same game.