Acer CEO resigns following huge quarterly loss

It’s no secret that Acer hasn’t been doing so well lately. The latest figures from Gartner and IDC show Acer’s international PC shipments declined by somewhere between 23% and 35% last quarter. As PC World reports, the firm has now gone on to post a huge revenue decline for the quarter—and to replace its CEO.

Acer’s loss for the third calendar quarter amounted to 13.1 billion Taiwanese dollars, or $445 million U.S. dollars, and came hand-in-hand with a nearly 12% decline in revenue compared to the same quarter a year ago.

J.T. Wang announced his resignation as Acer’s CEO today, stating, "It is time for me to hand over the responsibility to a new leadership team to path the way for a new era." PC World says Wang plans to stay on as Chairman until his tenure expires in June. Jim Wong, Acer’s President, will take over as CEO.

The CEO change is only the tip of the iceberg. According to PC World, Acer is also planning a major restructuring in order to boost its competitiveness. As part of that restructuring, 7% of the company’s work force will be let go, and a "newly formed advisory committee" will review the company’s strategy and propose changes to the board. "Following the changes," PC World adds, "Acer intends to introduce more competitive products in the PC, tablet and smartphone space to stabilize its market share."

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    • RhysAndrews
    • 7 years ago

    I remember reading something on this site a few years ago (I think it was when Windows 8 was first released, or when iPads were first announced) – something about Acer boasting that they would have the majority share of the PC market by 2014. The details are fuzzy, but it was a big claim. Lol.

    • odizzido
    • 7 years ago

    I got an acer laptop maybe about four years ago now. When I first got it, the battery would last for maybe around six hours, similar to the battery life of my old laptop which was three years old when I got my new one.

    Today, my acer laptop lasts maybe an hour or so while the three year older asus laptop I got still lasts over four. I won’t be buying acer over asus again, that’s for sure.

    • thermistor
    • 7 years ago

    I predicted this with the rise of the Ipad and other slates/tablets. Low-end, good enough computing is going to the cheapest possible device that can get to the Internet and have adequate screen size.

    Sorry Acer, I have 1 of your 17″ LCD’s going strong since 2006, and a 20″ LCD since 2009, but I’ve seen too many stock rooms filled with returns that you manufactured.

    • MadManOriginal
    • 7 years ago

    They are just positioning themselves for a Microsoft takeover.

      • TO11MTM
      • 7 years ago

      I don’t care how dumb anyone thinks Microsoft can be, they aren’t THAT dumb…..

        • MadManOriginal
        • 7 years ago

        They bought Nokia’s mobile device division.

          • kamikaziechameleon
          • 7 years ago

          Nokia had a solid product but was a poorly managed company otherwise.

          Their business strategies and marketing were rather horrible. They focused on making unique phones for every carrier to their own detriment creating their own competition and muddled marketing through staggered releases and leaked announcements.

          There wasn’t a single product release of theirs in the last 2 years that wasn’t overshadowed by leaks of another product 2-3 months out.

          That was Nokia’s undoing. If you wanted to buy one of their products in the last few years you never felt confident in that purchase, and windows mobile wasn’t the reason.

    • oldog
    • 7 years ago

    Acer and HTC both in trouble and both Taiwanese. Coincidence?

      • MadManOriginal
      • 7 years ago

      Yes.

    • HisDivineOrder
    • 7 years ago

    If only Steve Ballmer had been so honest in the details of why he felt it was time for him to hand over the reigns. Listening to Ballmer, you’d think he was going out the conquering hero and not the dejected loser who will always be remembered as tanking a multi-billion dollar company and allowing their startup and nearly bankrupt competitors to crawl back from the abyss to become dominant over MS.

      • Stonebender
      • 7 years ago

      Yeah, except MS made boatloads of money under Ballmer, so I don’t think that’s an apt comparison.

      • Farting Bob
      • 7 years ago

      MS was highly successful at generating money until Ballmer. Which is what a CEO is there for.

    • UnfriendlyFire
    • 7 years ago

    Some companies give their CEOs a massive platinum parachute before falling off the cliff…

      • stdRaichu
      • 7 years ago

      I think I’d like to see a liternal golden/platinum/tungsten/depleted uranium parachute for some of these guys at some point. Not only would they ensure a terminally terminal velocity on re-entry but it would provide a nice windfall to the residents near the landing area.

    • Chrispy_
    • 7 years ago

    The market shifted from cheap, “quality doesn’t matter” cost-saving to one where quality and feel matters.

    Even though Acer makes some good quality products, their reputation for cheap, creaky plastic laptops will take many years to undo, Possibly too many years….

    • ClickClick5
    • 7 years ago

    I rather like their screens. I currently have a 24in 1080 monitor from them. Nothing crazy or mind blowing fancy, just nice. 6ms response, etc. Their feature/price ratio is always welcoming to my wallet.

    • WhatMeWorry
    • 7 years ago

    Hell, didn’t Microsoft loose something like 600 million or 900 million of Surface? They should have given him a raise.

    • blastdoor
    • 7 years ago

    Acer (like so many other PC OEMs) reminds me of a dinosaur after the asteroid hit.

    Does that make Lenevo a crocodile?

    (Apple is the asteroid)

      • NeelyCam
      • 7 years ago

      [quote<](Apple is the asteroid)[/quote<] You know, in that "asteroid hitting" scenario, the asteroid kind of got blown to bits as well...

        • Srsly_Bro
        • 7 years ago

        I don’t think he understands what he said.

        • Bauxite
        • 7 years ago

        And crocodiles are still around several hundred million years later, making them a quite successful stage of evolution. Modern ‘civilized’ humans might want to STFU until they make it to the 1 million mark, we may turn out to be a ~10 thousand year fart on the timeline of life, granted a quite noisy one 😉

        Anyways, lenovo makes some pretty models still if you care about having more than a fashion accessory, they didn’t totally botch the ibm transition.

          • blastdoor
          • 7 years ago

          I meant that as a compliment to lenevo for the reasons you cited

        • blastdoor
        • 7 years ago

        Heh — excellent point. I thumbs upped you for that

    • Deanjo
    • 7 years ago

    Considering their tech support (and I use that term very loosely) is absolute crap, I can’t say I’m surprised. They can’t even supply a CSM option on their lower end laptops.

    • slaimus
    • 7 years ago

    The only Acer branded products I have owned are 3 of their LCD monitors, and all of them have been very reliable and still in use.

    I remember back in the day where AOpen computer parts are considered excellent, and BenQ peripherals were good for their price. Oh how they have destroyed their brands.

    I guess I am lucky I never actually had bought one of their supposedly bad laptops.

      • ryko
      • 7 years ago

      fyi, benq still makes good monitors…they have some lightboost ones that many people claim are the best of the bunch for that little trick.

    • Star Brood
    • 7 years ago

    Maybe they should fire their board of directors and not pin everything on the CEO every time something like this happens. Everyone loves a public figure as a fall guy.

    • anotherengineer
    • 7 years ago

    I wonder if he is going to get a 10 million $ resignation bonus??

    • Essence
    • 7 years ago

    Well, Acer have mostly been Intel and Nvidia. So am not surprised its going down looking at what Acer charges. Personally I wouldn’t touch Acer with a pole stick.. Last I had Acer was since the Nvidia Bum-gate fiasco. Reason Why I never mess with Acer and Nvidia combo.

    Not only did the Nvidia card go Boom, but the sound card also.

    The world would be a better place without Acer.. Go home Acer..

    • bthylafh
    • 7 years ago

    That’s sad. My 11.6″ Aspire 1410 is still a good laptop four years & an SSD upgrade later.

      • NeelyCam
      • 7 years ago

      Agreed. I have the same laptop, except that mine is branded Gateway. Also upgraded with SSD and more memory, and recently replaced the old dying battery with an extended one (now getting 8+h or battery life).

      I’ve been thinking of getting a new one now that Haswell ultrabooks are out, but I haven’t seen anything particularly compelling yet. Unless something really nice comes out in the next month and a half, I might just stick with my current one for another year and upgrade when Broadwell ultrabooks come out

        • MadManOriginal
        • 7 years ago

        Maybe with Broadwell we’ll finally get back to Core ULV battery life.

      • ludi
      • 7 years ago

      Still got an 1810TZ here, maxed the RAM and put an SSD in it. Acer did make a few good ones here and there, the problem was picking those out from the cheap junk.

    • rwburnham
    • 7 years ago

    I have only purchased three Acer products in my life, and I have regretted all of them.

    • chµck
    • 7 years ago

    imo, they could use a name change. I think for many consumers, “Acer” is synonymous with low quality, ugly products, reminiscent of the older days. They have decent products today.

      • DreadCthulhu
      • 7 years ago

      By older days, do you mean earlier this year? Acer managed to come out with the first 8″ Windows tablet, and then ruined it with a just awful screen. The local Wallyworld has a display model, and it looks worse than the sub $100 Android tablets from obscure Chinese brands. That is the one thing you should never screw up on a tablet.

      • Duct Tape Dude
      • 7 years ago

      I thought the same until I gave their high-end S7 ultrabook a try and quality was absurdly terrible. After comparing it with 3 other equivalent S7s, I found varying degrees of terrible build quality, design decisions, etc. It looked very pretty but was just not up to par.

        • chµck
        • 7 years ago

        Hmm, well the reviews online seem to suggest otherwise, but that could be because many companies post fake reviews. The ones on amazone are all verified purchases however.
        [url<]http://www.amazon.com/Acer-S7-392-9890-13-3-Inch-Touchscreen-Ultrabook/product-reviews/B00D4AX780/ref=sr_1_2_cm_cr_acr_txt?ie=UTF8&showViewpoints=1[/url<]

          • Duct Tape Dude
          • 7 years ago

          Yeah I was really excited for it and wanted to love it.

          I specifically found keyboard issues on 2 of 3 models, major touchscreen issues on 1 (appeared after 29 days), and there were a couple design issues that I didn’t like (bottom was so flexible it could click the touchpad on 2 of 3 models). Other people on Notebook Review found scratching problems from the aluminum on the Gorilla Glass. Everything else, especially the internals, was superb.

          Maybe I got a dud but I wasn’t willing to try and play the replacement+RMA game when cheaper, more reliable options exist. I’m on a last-gen Zenbook now and I love it.

      • delsydsoftware
      • 7 years ago

      When I worked for the IBM Thinkpad group (before they were sold off to Lenovo), management decided to outsource the lowest-end laptop in the Thinkpad line to Acer (It was the R-series, if you’re curious). It was a terrible mistake. Thinkpad hardware was generally well-respected and reliable. We had tons of trouble getting the windows installation and driver certification done for those machines, and that’s before they ever went to manufacturing. Everything about the laptops reeked of cheapness, and we actually put our name on it.

      Later on, I had a job at a firm that refurbished IBM laptops (small world). I got to see those same Acer-based laptops come back, and the internals were just as terrible as the software side of things. This was Acer circa 2002, but it left a big impression on me.

      • Duck
      • 7 years ago

      No, Acer still does the low end junk.

      • WhatMeWorry
      • 7 years ago

      How about Azer?

        • chµck
        • 7 years ago

        It would be a hit among d&d fans: [url<]https://en.wikipedia.org/wiki/Azer[/url<]

      • ssidbroadcast
      • 7 years ago

      I actually kinda agree with this. They aren’t nearly as bad as Toshiba. Maybe they should change their name to “Asuser” so that they can be confused for a company that makes good products.

      • hoboGeek
      • 7 years ago

      A good name (and relevant) would be … Asser.

      • ShadowEyez
      • 7 years ago

      They have decent products. Unfortunately for them, some companies have great products, which in a always connected news and review filled world, win out.

      • travbrad
      • 7 years ago

      Changing your name is a difficult thing to do though. Acer may not have a great reputation among consumers, but at least it’s a recognizable name. Whatever random name they come up with would have no brand recognition at all.

      I agree with the others though, they still make a lot of low quality stuff. They do make some decent products now too, but the majority of it is still crap (although that could arguably said of many OEMs)

    • jdaven
    • 7 years ago

    I tried searching for the quote but didn’t an executive at Acer claim that the computing share of US PC companies would never match that of Asian companies or something like that. This was during the netbook craze when Acer’s share increased dramatically. Can anyone find that quote?

    Edit: I did not find that specific quote but his little gem shows why CEO’s should never open their mouths:

    [url<]http://www.engadget.com/2009/07/07/ce-oh-no-he-didn-t-part-lxi-acer-chief-says-japanese-pc-compan/[/url<]

      • Mr. Eco
      • 7 years ago

      Ha-ha, how the times have changed 🙂

    • hoboGeek
    • 7 years ago

    They never mention improving the quality of their products.Maybe that’s why people didn’t put up with their crap anymore in the FIRST place.

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