CIO Today

CIO Today Network Sites:   Top Tech News  |   CIO Today   |   Mobile Tech Today   |   Data Storage Today
Daily Briefing for Technology's Top Decision-Makers
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Thursday, April 24th 
Next Generation Data Center Is Here!
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Trending Topics:   Security Heartbleed Big Data Cloud Computing Windows XP Data Centers OS X Mavericks
Home
Enterprise Software
Enterprise Hardware
Big Data
Network Security
Cloud Computing
CRM Systems
Data Storage
Operating Systems
Communications
CIO Issues
Mobile Tech
Chips & Processors
World Wide Web
Business Briefing
After Hours
Press Releases
 
Free Newsletters
Top CIO News
 
Mobile Tech Today
 

Enterprise Hardware

Why Apple Is Not To Blame for Acer CEO's Demise

Why Apple Is Not To Blame for Acer CEO
November 5, 2013 1:19PM

Bookmark and Share
"The issue for Acer from a competitive standpoint is that with the price of PCs and tablets and other components dropping so precipitously...we're seeing far better-known companies who sell products that are generally better reviewed than Acer's being extremely competitive in their own pricing," said analyst Charles King.

Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.

He's being called another victim of the iPad. J.T. Wang, chairman and CEO of Acer, has resigned his post in the wake of the company's consistently poor earnings reports.

Although Wang will still sit in the board chair role until next June, the search committee has already found his replacement: Corporate President Jim Wong will take the CEO reins on Jan. 1. Beyond the C-suite shake up, Acer's management team is also developing what it calls a "comprehensive restructuring plan."

"Acer encountered many complicated and harsh challenges in the past few years," Wang said. "With the consecutive poor financial results, it is time for me to hand over the responsibility to a new leadership team to pave the way for a new era. I feel optimistic toward Acer's future. The management team promises to carry out the internal restructuring and will work closely with the Board on the corporate transformation."

How Acer Lost Its Advantage

Can Acer make a comeback? Charles King, principal analyst at Pund-IT, told us nothing is impossible. But market dynamics have changed dramatically since Acer entered the picture with its extremely low-cost, budget-conscious netbooks.

"The issue for Acer from a competitive standpoint is that with the price of PCs and tablets and other components dropping so precipitously -- and the market for traditional PCs experiencing so much commotion -- we're seeing far better-known companies who sell products that are generally better reviewed than Acer's being extremely competitive in their own pricing," King said.

His point: If standard PCs and tablets were selling for several hundred dollars more today, being the low-cost leader would be a defensible position. When everybody is racing toward the bottom on pricing, he said, it makes it really tough on the vendors depending on low prices to bring them business.

"I saw a couple of headlines today suggesting Acer is being driven out of business by the iPad. I don't think the iPad was their biggest problem," King said. "I think the big problem was the corner of the market where Acer was standing alone is getting more and more crowded."

Acer's Restructuring Plan

Acer's board has set up a Transformation Advisory Committee with board member Stan Shih as chairman and Acer co-founder George Huang as executive secretary. The committee will propose changes in the company vision, strategy, and execution plans for the board's approval. To support the new development needs, the board has approved the issue of 136 million new common shares for a capital increase in cash.

"After making structural adjustments, we will introduce more competitive products within the existing PC, tablet, and smartphone business and stabilize our market share," Shih said. "This will be the basis of our transformation and for developing new business opportunities."

Acer's personnel and business restructuring plans include reducing manpower, product plan termination with related product tooling and legal fees, resulting in a one-time cost of $150 million which is expected to be reported in the fourth-quarter financial results. Acer will cut its worldwide employees by 7 percent, resulting in operating expense savings of $100 million annually from 2014.

Tell Us What You Think
Comment:

Name:

Mambisa:

Posted: 2013-11-05 @ 1:58pm PT
This year, the family bought a Dell, Gateway and Toshiba that were comparably priced with Acer and had better ratings and features. Between choosing a Dell or an Acer, I'm going to go with Dell and many buyers seem to be thinking the same about choosing another brand versus Acer when the price is comparable.



 Enterprise Hardware
1. IBM Targets Big Data with Power8 Line
2. Officials Reveal Microsoft Data Center
3. AT&T Expanding Its Gigabit Broadband
4. Vaio Fit Battery Danger Forces Recall
5. Drop in Global PC Shipments Slows




 Most Popular Articles
1. BlackBerry Drops T-Mobile After Nasty Spat
2. Cisco, IBM Launch Internet of Things Consortium
3. Salesforce CRM Gets Industry Specific for Internet of Customers
4. Intel Bets on Cloudera for Big Data Analytics
5. SAP HANA Data Warehouse App Gets Faster Analytics

Have an informed opinion on this story?
Send a Letter to the Editor.
We want to know what you think.
Send us your Feedback.

 Related Topics  Latest News & Special Reports

  IBM Targets Big Data with Power8 Line
  Opera Coast Offers Safari Alternative
  FCC Defends Internet Traffic Proposal
  Fund Seeks To Head Off Heartbleeds
  Salesforce Developing App SOS Button

 Technology Marketplace
Business Intelligence
Get real-time, cloud-based information services with Neustar.
 
Cloud Computing
Next Generation Data Center Is Here! Vblock™ Systems from VCE
 
Contact Centers
HP delivers the future of the contact center with HP Qfiniti 10.
 
Data Storage
Next Generation Data Center Is Here! Vblock™ Systems from VCE
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Enterprise Hardware
Barium Ferrite (BaFe) is the future of tape.
2.5" Enterprise-class SATA & SAS SSDs for server & storage applications
 
Hardware
Protect your network with APC Smart-UPS battery backup
 
Network Security
Protect your network with APC Smart-UPS battery backup
 

Network Security Spotlight
Tech Giants Fund Initiative To Prevent Future Heartbleeds
Can more funding prevent Heartbleed vulnerabilities in future open-source software? A new Core Infrastructure Initiative at the Linux Foundation is attempting to find out.
 
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Navigation
CIO Today
Home/Top News | Enterprise Software | Enterprise Hardware | Big Data | Network Security | Cloud Computing | CRM Systems
Data Storage | Operating Systems | Communications | CIO Issues | Mobile Tech | Chips & Processors | World Wide Web
Business Briefing | After Hours | Press Releases
Also visit these Enterprise Technology Sites
Top Tech News | CIO Today | Mobile Tech Today | Data Storage Today

Services:
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About CIO Today Network | How To Contact Us | Article Reprints | Services for PR Pros (In partnership with NewsFactor) | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 CIO Today. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.