Acer bets on Windows 8, despite row with Microsoft
Staff Reporter 2012-11-18 15:26
Acer's tablet PC with Windows 8 OS. (Photo/ Teng Po-jen)
Taiwan's Acer and Microsoft have entered into a tangled business relationship since the software giant's decision to move into the hardware business, as Acer is still betting on Microsoft's recovery with the new Windows 8 system, the First Financial Daily reports.
In a recent interview with the newspaper, Scott Lin, president of Acer Greater China, said he hoped Microsoft would use its recently launched Surface tablet to promote the Windows 8 system and the software giant was willing to have a smaller market share or even move out of the sector later.
It was not the first time an Acer executive had expressed such an opinion on Microsoft's launch of its new tablet, which has caused delays in the Taiwanese company offering its own tablet products running on the Windows 8 RT platform, the newspaper said.
"You need sharp teeth to take in something hard," Lin said, when commenting on Microsoft's plan to venture into the hardware market.
Acer, along with other companies in the personal computer sector, are pinning their hopes on Microsoft's Windows 8 system to reverse their losing streak against Apple and Google, which have combined changed consumer buying trends.
Microsoft's Windows 8 system, which hit the market in late October, targets both PC and tablet users with its new touchscreen interface and better integration with its latest Windows Phone 8 system.
The overall consumption of tech products has not declined, Li said, but people are considering buying smartphones and tablets before they look at notebook computers.
As a result, Acer's sales have been dropping, with its third quarter net profit of NT$68 million (US$2.34 million) falling short of analysts' expectations of NT$503 million (US$17.32 million), while market researcher Gartner's data showed a 10% slip in the company's global shipments.
"I promise that Acer will return on the path to growth next year," said Lin, who expressed confidence in the sales of computers running on the Windows 8 system.
In addition, Li said Acer had re-examined its past strategy of flooding the market with cheap products, and decided to establish itself in the high-end market with the Windows 8 platform and its product designs.
As for the smartphone market, Lin said Acer still has a team for such products but does not plan to put as much resources in the business as Sony and Nokia.
Acer hopes to sell over 1 million smartphones next year in the consumer market through distribution partnerships with telecom operators, Lin told the newspaper.
