Acer to split off tablet and smartphone unit

“Taiwanese personal computer maker Acer Corp., which Tuesday lowered its forecasts for second-quarter PC shipments, unveiled plans to create a separate tablet division and the appointment of Jim Wong as its new corporate president,” Lorraine Luk reports for The Wall Street Journal.

“Acer said it was… meeting the challenge of Apple Inc.’s iPad tablet with the creation of [separate] tablet operations… and not within the overall group that is dominated by notebook sales,” Luk reports. “Acer’s operations are currently divided into an IT division, which includes its notebook, tablet, and netbook operations, and a smartphone division, but under the restructuring, the tablet and smartphone unit will be one division, and the notebook division separate.”

“Mr. Wong, who previously led the company’s global IT operations, including product development and logistics for the last ten years as corporate senior vice president at Acer, replaces Chief Executive and President Gianfranco Lanci, who resigned last month after failing to reach agreement with board members on various issues,” Luk reports. “Apart from running the company, Mr. Wong will also head the new tablet and smartphone division, while Campbell Kan, formerly vice president of the smartphone business, will head global PC operations.”

Luk reports, “‘Acer will aggressively yet cautiously develop data-consumption products, tablet PCs and smartphones based on the solid foundation of the main PC business. In the PC business, Acer will continue to seek volume/shipment growth, but we must optimize our multi-brand strategy by having clear differentiation of the brands’ positioning and create value for our customers,’ the company said in a statement.”

MacDailyNews Take: Yes, but will Acer’s pretend iPhones and iPads still scream shitty build-quality, fall apart, and feature a derivate, insecure OS? If Acer plans on using Android, they’ll be three for three. After all, those three “selling points” seem to be what’s drawing Acer’s remaining customers, we guess. It certainly isn’t brilliant industrial design, high-quality fit and finish, and the world’s most advanced operating systems. Most likely, people settle for Acer crap because they’re priced like the excrement they are.

Luk reports, “Analysts said they were skeptical Acer could break into the fast-growing mobile Internet device market successfully under Wong. ‘New president Wong has solid background in the PC space but not in mobile Internet devices. Acer also underestimated Lanci’s influence in global distribution channels. We have seen channel partners in Europe switching orders to Asustek Computer Inc. since Lanci left,’ said Jenny Lai, an analyst at HSBC.”

Read more in the full article here.

11 Comments

  1. Apple’s new devices are sweeping away the entire structure of personal computing as it has been for over two decades. The old players suddenly realize they have to be in the new game. But it’s in their DNA just to copy what someone else has developed then make it cheap. Without Apple’s head start using patented technology, they are doomed to churning out profitless junk.

  2. I wonder if they are splitting into two divisions so when they have to report their dismal tablet sales and loss of revenue, it can be a minor downplay from their reporting of loss of sales and revenue from their PC division. In essence, two little losses instead of one really big loss!

    “Two Wongs don’t make a right” LMAOROF – Good one

  3. Competitors have finally realized Apple bought, licensed and created a top to bottom infrastructure around “networkable UNIX” with the creation of its own software and SDKs & top notch mechanical design with HIGH MARGINS.

    Who out there, except Apple, has a truly robust underpinning OS?

    1. Android: maybe, but no hardware maker controls his destiny with that. The Android parasite may have created the next Windows Albatross around the neck of hardware “partners”.
    2. WebOS: HP is betting the farm, but I certainly don’t know how robust it can be, but they have the funding to do it if they put their skills to it.
    3. Nokia: God only knows and Ballmer isn’t speaking.
    4. RIM: The 2 headed CEO & their sloooow start doesn’t give me confidence. Dedicated email phones are a dying breed.
    5. Others: Giveaways do not make good margins.

    Apple may have created the magic dream of dominating a whole market segment by being first, best and different.

    1. Remember, in the BOGOs and out and out freebies, those offers are made by the carrier. The carrier has paid real money to the device manufacturer for them. The carriers plan to recoup that money from user contact and whatever other fees they can get away with.

      TANSTAAFL.

  4. “New president Wong has solid background in the PC space but not in mobile Internet devices.”

    Uh oh. Someone forgot to tell Acer that this is THE POST-PC ERA. Good thing they spun off that new division. When it FAILs they can jettison it in a hurry while the rest of the company slides down the sales curve to total Windows PC demise. :mrgreen:

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