Acer suffers first-ever quarterly loss, predicts iPad 'fever' will recede
Acer reported the first quarterly loss in company history on Wednesday, but the netbook maker's chairman attempted to convince investors that consumer "fever" for tablets like the iPad will not last.
Acer Chairman J.T. Wang chalked up his company's poor second-quarter performance as a "correction period," according to Reuters. His company has seen numerous struggles since the launch of Apple's iPad, which has cut into the sales of low-cost, low-power netbooks.
Wang reportedly added that he expects the "fever" for tablets to recede, and for consumers to regain interest in traditional style notebooks. Though he did not mention the iPad by name, Apple's touchscreen device has dominated the tablet market since it first went on sale in 2010.
It isn't the first time Wang has predicted the downfall of the iPad. Last year, Acer's chairman forecast the iPad's market share would fall to between 20 percent and 30 percent of the tablet market. To date, Apple still controls well over 50 percent of all tablet sales.
Acer's sales have consistently tumbled throughout 2011, but the company remains the world's No. 2 PC vendor. Wang conceded on Wednesday that it will be "impossible" for Acer to break even this year.
In all, Acer saw a net loss of $234.3 million, or $6.79 billion in New Taiwan dollars, between April and June. That was more than double the $3.3 billion in New Taiwan dollars analysts expected the company to report.
Acer's chief executive resigned from the company in April, with the company looking to reorganize in an effort to take on Apple's market-leading iPad. At the time, it was said that impact of successful Apple products was a "key reason" for the departure of Gianfranco Lanci.
The collapse of the netbook market, of which Acer was king, has led the company to embrace Android on a series of tablet-style devices it company hopes will take on the iPad. In July, Wang accused Apple of inciting a "patent war" with Android device manufacturers.
In May, chairman Wang and ex-CEO Lanci exchanged heated words over who was to blame for Acer's slump in sales. Lanci said Acer was too slow to react to Apple's iPad, while the company fired back and said their former chief executive was simply unable to deliver results.
Acer Chairman J.T. Wang chalked up his company's poor second-quarter performance as a "correction period," according to Reuters. His company has seen numerous struggles since the launch of Apple's iPad, which has cut into the sales of low-cost, low-power netbooks.
Wang reportedly added that he expects the "fever" for tablets to recede, and for consumers to regain interest in traditional style notebooks. Though he did not mention the iPad by name, Apple's touchscreen device has dominated the tablet market since it first went on sale in 2010.
It isn't the first time Wang has predicted the downfall of the iPad. Last year, Acer's chairman forecast the iPad's market share would fall to between 20 percent and 30 percent of the tablet market. To date, Apple still controls well over 50 percent of all tablet sales.
Acer's sales have consistently tumbled throughout 2011, but the company remains the world's No. 2 PC vendor. Wang conceded on Wednesday that it will be "impossible" for Acer to break even this year.
In all, Acer saw a net loss of $234.3 million, or $6.79 billion in New Taiwan dollars, between April and June. That was more than double the $3.3 billion in New Taiwan dollars analysts expected the company to report.
Acer's chief executive resigned from the company in April, with the company looking to reorganize in an effort to take on Apple's market-leading iPad. At the time, it was said that impact of successful Apple products was a "key reason" for the departure of Gianfranco Lanci.
The collapse of the netbook market, of which Acer was king, has led the company to embrace Android on a series of tablet-style devices it company hopes will take on the iPad. In July, Wang accused Apple of inciting a "patent war" with Android device manufacturers.
In May, chairman Wang and ex-CEO Lanci exchanged heated words over who was to blame for Acer's slump in sales. Lanci said Acer was too slow to react to Apple's iPad, while the company fired back and said their former chief executive was simply unable to deliver results.
Comments
Seriously though, boy was Lanci correct or what?
Seriously though, he feels that the tablet fever will recede and that netbooks/notebooks will once again come to the fore, yet despite this prediction of his Acer is gearing up to release a slew of Android Tablets..... hedging your bets Mr Wang or just talking out of your ass?
your traditional PC is now the thing of the past, people realized they do not need all that power at home when most of what you do is internet based, the real computing power is going to be in the cloud, and most consumer will care less if cloud computer is an HP or Dell or something else, well all of Google Servers and computer are their own design.
Well to the new pyridine, and ACER has not figure it out yet
I had one immediate response to the 'iPad fever will recede' comment... I've wiped my eyes now but my sides are still aching.
I remember when people were saying that about the iPod, so many people were calling it a fad it was dizzying at times. It's still pretty strong, the growth only waned after Apple started releasing the iPhone.
I think the iPad has already outlasted the duration of the netbook hype.
Is that counting all of the xp tablets from years gone by?
Playbook 50,000 ?
Touchpad ? 45,000?
Xoom. 100,000 ?
Samsung units 1,000,000 ?
The market share figures sound like complete bullshit.
Ok, apple have sold somewhere in the region of 25 million plus tablets. So if that's 50 percent please list the other 25 million tablets out there
Is that counting all of the xp tablets from years gone by?
Playbook 50,000 ?
Touchpad ? 45,000?
Xoom. 100,000 ?
The market share figures sound like complete bullshit.
Also, remember when there were going to be 3 million tablets sold last year? I think the iPad was included with some of those predictions, and they exceeded that in a quarter of sales.
I reckon Christmas and next year will see a sharp increase in sales lasting a couple of years. After that it will still increase each year but at a slower rate and in 4 years time sales will level out. 6 years time they will start to drop as it become less of a must have adult toy. Bit like the iPod did.
I think HP is the only one who realized what is about to happen, unlike IBM who hung on to Mainframe computer too long and almost tanked itself before realizing its real value was in its business systems business not selling mainframe, HP is trying to reinvent itself before it is too late.
your traditional PC is now the thing of the past, people realized they do not need all that power at home when most of what you do is internet based, the real computing power is going to be in the cloud, and most consumer will care less if cloud computer is an HP or Dell or something else, well all of Google Servers and computer are their own design.
Well to the new pyridine, and ACER has not figure it out yet
Traditional pc's are still selling well, it's the foolish forays into tablets which have cost the manufacturers.
Ok, apple have sold somewhere in the region of 25 million plus tablets. So if that's 50 percent please list the other 25 million tablets out there
Is that counting all of the xp tablets from years gone by?
Playbook 50,000 ?
Touchpad ? 45,000?
Xoom. 100,000 ?
Samsung units 1,000,000 ?
The market share figures sound like complete bullshit.
Well, technically, the article says, "well over 50%".
Ok, apple have sold somewhere in the region of 25 million plus tablets. So if that's 50 percent please list the other 25 million tablets out there
Is that counting all of the xp tablets from years gone by?
Playbook 50,000 ?
Touchpad ? 45,000?
Xoom. 100,000 ?
Samsung units 1,000,000 ?
The market share figures sound like complete bullshit.
I myself am certain that Apple has almost 90% of the current tablet market. However, I think AI stuck to "well over 50%" since there have been other (probably BS) reports that pegged the market share at around 65% or something. It was on a few older posts.
So I think AI just decided to play it safe. "Well over 50%" is actually true! They never said it was 50% only.
Sometimes I get the impression that the only non-iPad tablets sold are the ones that were given away by Samsung when they demoed the 10.1" Galaxy tab + whatever Bill Gates has approved in his household (definitely not the iPad)!!
EDIT: Looks like Rob55 beat me to it.
Well to the new pyridine, and ACER has not figure it out yet
Let me apologize in advance for poking a little fun. Did you mean paradigm or did you actually mean what you wrote (pyridine: a basic heterocyclic organic compound with the chemical formula C5H5N)?
I'm only kidding though. Peace.
Well, technically, the article says, "well over 50%".
I spotted that, but what's well over 50%? More than 50, less than 60? Otherwise it would be over 60% surely.
I don't think anyone knows how many tablets the other manufacturers have sold and they are not very forthcoming with their own highly embarrassing figures. I suspect that the tablet market is more like 90% Apple 10% others.
I think the iPad "fever" will recede also.....whenever everyone has one.
Yeah, They seem to be terribly sturdy, like they were meant to last a lifetime. But then again, more complex App's will require faster iPad's. Mobile networks with broader bandwidth require iPads with different sensors and antennas....... . So IMO the iPad fever will just go on and on for the next years.
He's right iPad feaver will not last. Problem for him though is it will last around 4 years, right now it's just picking up the pace.
I reckon Christmas and next year will see a sharp increase in sales lasting a couple of years. After that it will still increase each year but at a slower rate and in 4 years time sales will level out. 6 years time they will start to drop as it become less of a must have adult toy. Bit like the iPod did.
I disagree. First orders may decrease. But they will continue to open distribution in foreign markets and in 4 years the refresh cycle will be kicking into full swing with original purchasers upgrading to newer models.
Wow, Apple has "only" over 50 percent of the tablet market? I thought they controlled way more than that.
"To date, Apple still controls well over 50 percent of all tablet sales."
This is current sales. Yes there are millions of them out there, but currently apple is selling well over 50%.
I'm assuming they are including cheap android tablets in the "sales"
Sometimes I get the impression that the only non-iPad tablets sold are the ones that were given away by Samsung when they demoed the 10.1" Galaxy tab +.
And then there are all those tablet thingies, that are sitting on a shelf in the shops, waiting to be bought by accident.
Ok, apple have sold somewhere in the region of 25 million plus tablets. So if that's 50 percent please list the other 25 million tablets out there
Is that counting all of the xp tablets from years gone by?
Playbook 50,000 ?
Touchpad ? 45,000?
Xoom. 100,000 ?
Samsung units 1,000,000 ?
The market share figures sound like complete bullshit.
Actually, the number of touch pads sold is probably around 500,000. Of course, they had to lower the price to $99 to make that happen.
Not that it changes your analysis much.