“By staying one step ahead of the competition, Acer can avoid pricing competition for some of its new models while capturing earlier adopters who may be willing to pay higher prices,” Edward Yen (顏子傑), who rates the stock “buy” at UBS AG in Taipei, wrote in a report on Tuesday. “This allows for better margins on some of its models despite erosion on others.”
Acer is confident of maintaining a “reasonable” operating profit this year, Wang said. The firm’s operating margin was 2.94 percent in the fourth-quarter, from 2 percent a year earlier, it reported on March. 31.
ADDITIONAL REPORTING BY ELIZABETH TCHII
RSS