Acer Shifts Focus on Chromebooks and Android after Recording Losses

"Acer Chromebook"

The falling demand for desktop computers and laptops owing to the increased use of smartphones as seen mixed reactions from PC makers and Acer does not take this lightly. Acer is the fourth largest computer maker but over the past few years, things have not been on their side. The chairman of Acer, J.T. Wang hinted that this giant computer maker was shifting focus to diversify its market by growing its non-windows range of products.

Speaking to investors, Wang noted that the move would take effect as soon as possible. Wang warned that Microsoft needs to build confidence with its associates as far as windows products are concerned otherwise it risks falling into dark times in future where its windows products may become irrelevant.

With increasing use of smartphones, and tablets in the recent years, it has seen the demand for traditional laptops and desktop computer diminish. This is an aspect, which has sent the sales, and profits of computer chip making companies like Intel to remain tumbling. According to a statement by Acer’s chairman Wang, the company would focus on android, a mainstream Google product on the smartphone market.

In addition, it would also shift more attention to chromebook operating system. Considering that Microsoft is a rival for Google, this could mean positive news for Google. Acer’s strategy may be beneficial to Google’s android development. Android has been very popular with smartphones and tablets and the Acer’s move would further build more confidence with the growth of android operating system.

Microsoft has created a situation where there is lack of confidence in windows products something that has led to consumers being hesitant in buying windows computers. In the second quarter of 2013, Acer posted a net loss of £7.3 million equivalent to $343 million and when this is compared to the results of second quarter in 2012, where the company recorded a net profit of $68 million equivalent to £1.5 million, it clearly shows that Acer is facing tough times ahead.

Its move may help in keeping the company in the right track as far as profitability is concerned. However, there are concerns that with too many smartphones on the market, there is more to be done by Acer. With the Intel Corp showing slow trend in its chip products’ demand, a common consensus is needed to make the demand for PC computers and laptops increase in coming years.

The shipment of personal computers has dwindled despite the introduction of windows 8, which has been designed to make PCs look like tablets. According to a research firm IDC, the word-wide shipment of desktop and laptops including those of giant makers like Dell Inc. and Hewlett Packard has fell significantly in 2013.

IDC noted that this is the sharpest drop in the shipment of personal computers and laptops since the research firm began tracking PC and laptop data in 1994. The shipment fell by 14 percent in the first quarter of 2013. Gartner Inc, another research firm also gave similar results after it cited that the estimated global shipments of laptops and personal computers sank by 11.2 percent.


The move by Acer to shift its attention to chromebooks and android operating systems may be welcomed as a good strategy for turning around the sapping demand for PCs and laptops. But can Acer impact the already ill-hurt PC and laptop market?