Acer Experiences Worst Quarter Since 2004; 64% Income Dive
Acer reported today a disappointing sales quota. The company experienced it’s lowest profit since 2004. The cause? All the hype over the iPad and the iPad 2, as well as the surge of many other tablets. Acer’s net income took a dive 64% to just over $41 million, the lowest since Spring 2004. The company even stated that the third quarter might see meager results as well.
Acer has been known to be losing ground in the notebook market, with many consumers switching over to tablets. Although Acer has long denied the fact of the iPad’s success, it is a fact hard to deny with such low profits. Unfortunately, Acer’s revenue consists of about three quarters of the company, with desktops and mobile devices making up just a quarter of its revenue.
The real question is, will Acer adapt to tablet demands, or will the company fold in the coming years? Analysts believe that much of Acer’s failure was due to the previous CEO, Lanci and this marks the final bit of his mark on the company since his resignation. Although Acer does have a few tablets coming out this year, it is yet to be seen if this will be enough to yank the company back on its feet. We will just have to wait and see.