For the first time ever, Acer has posted a net loss of £142m for the quarter ending in June. Company chairman J.T. Wang said that he sees a slowdown to the current wave of ‘tablet fever’. This, in part, explains the dip in sales of 32 percent from a year ago. Acer has explained the quarterly loss as a “correction period” plagued by severance pay, £91m to rid itself of excess inventory and £18 million to reorganize the company.
The fall of tablets, as predicted by J.T. Wang, is not all bad for the Taiwanese PC maker. Mr. Wang believes that as demand for tablets fades, a resurgence in the demand for notebooks will begin. As a major player in notebook computers, Acer will adopt a new business model which will keep better control of inventory. The impact of the new model should be seen in the third and fourth quarters where Acer expects sales growth and better margins.
Despite the optimism, the chairman believes it would be “impossible” for the company to break even this year. First the CEO resigns in March then the company slashes third quarter notebook shipments by 15 percent and now this? Sounds like the Android tablet business is shaping up to be a tough nut to crack.
via Cnet
