Acer Lowers PC Sales Goal

Mar 29, 2011 Ι Industry In-Focus Ι Electronics and Computers Ι By Ben Shen, CENS
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Taipei, March 29, 2011 (CENS)--Acer Inc., one of the world's leading personal-computer venders, has unexpectedly adjusted downward its first-quarter PC sales goal to a negative annual growth of 10% from originally set positive growth of 3%.

The outlook for Acer's PC sales is gloomy because the company's operating net profit margin will fall under 2% in the first quarter of the year from the preceding quarter's 2.93%, casting a cloud over its future earning performance.

The downward adjustment by Acer has cast a deep-water bomb on the worldwide PC industry. Acer has been unable to meet operating goal for two quarters in a row. An industry observer believed the gloomy outlook for Acer is associated with strong competition from Apple Inc.'s iPad tablet PCs.

Another big PC vender—Asustek Computer Inc. is also struggling to keep the bottom line to see sales cut by 10% in the first quarter from the preceding quarter.

In a news letter released by Acer, its PC sales in the first quarter will shrink 10% from the preceding quarter because of the weakened demand of the PC markets in Western Europe and the U.S.

Acer predicted it will not see positive growth for sales of PCs in the second quarter, given an optimistic projection made by institutional investors that the worldwide notebook PC market will see shipment increase by 10% in the second quarter from the preceding quarter.

An industry analyst believed the supply chain of the worldwide high-tech industry has been disrupted by the devastating earthquake hitting March 11 northeastern Japan, a manufacturing hub for a lot of electronic components.
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