Acer Collapses: Tablet, Netbook Shipments Cut by up to 60%
By 
The shift in popularity from netbooks to tablet PC’s prompted Acer, the world number 2 PC maker, to announce that they are changing their focus. The company shipped 400,000-500,000 netbooks in May which represents a cut of over 50% below what they sent in April.
Despite the reduction in netbook shipments, Acer has also reduced their target for tablet shipments from 5-7 million down to 2.5-3 million. This reduction should not be taken as any indication that Acer’s devices aren’t selling well.
Sales for their Android-based Iconia Tab devices rested between 200,000 and 300,000 units in May. Acer isn’t alone here either, most manufacturers have endeavored to lessen their supply of devices in the channel due in large part to a seasonal slow-down in the industry.
Unfortunately for Acer, the profit on tablets is much lower than for netbook PCs. With luck, Acer will make up for this difference in volume. J.T. Wang, the CEO of Acer expressed his confidence that their Android-based devices can compete against the Apple iPad. This may be true for comparisons based on price alone as their pricing is much lower.
Earlier this month, Acer announced that they would be writing off $150 million in inventory and doubtful payments in Europe as well as reducing their employee count by 300 in that area. These adjustments are part of an overall strategy to correct a decrease in share value that came after a change in their management team.
[via Reuters]
