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Acer, recently the world's second largest shipper, rough year. But in March a deliberate decision was taken by senior management to abandon its goal of dethroning the HP and instead focus on how to get better, more differentiated products. The result: sales and earnings in freely. At least they knew it came — but losing millions of customers and a huge percentage of your is not something any company likes to do.
The company is taking heavy losses — twice as hard, in fact, as Reuters analysts estimated. Taiwan 6.79 billion dollars (about $ 250 million) went down the drain in Q2. It is their biggest loss ever and the first time they have done worse than forecast. The results indicate that Acer Chairman Jt Wang concedes "tries to break even this year becomes impossible. But I doubt that they plan on turning around the entire company in less than a year.
Despite losses and job cuts Acer remained stoic. They feel relaxation tablet "fever" and people will return to laptops (I'm not sure I agree). And although it is unlikely that they have any interest in (or to) buy HP business PC, Acer's President, Jim van comment that spinning is a natural thing for HP to do. He cryptically added that Acer will strive to meet the needs of its clients, including HP'S existing customers. What is the thing to say! Again however, with billions of losses every quarter, the last thing you want to Acer is $ 10 billion millstone around its neck from HP.
What he likely means that Acer could step-by-step HP shoes for the confusion. If they can stabilize quickly enough, personal systems group, HP mode move Acer could sweep in and take off a few million customers. But before that happens, expect more bad news.
(Updated to reflect the fact that figure 6.79 billion was in Taiwan dollars. really dumb I don't catch when the loss of $ 7bn would be likely to bury company)
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