Sat, Jan 11, 2014 - Page 14 News List

Acer annual sales fall for the third consecutive year

By Helen Ku  /  Staff reporter

Acer Inc (宏碁), the world’s fourth-largest PC maker, yesterday reported that sales last quarter fell to NT$86.69 billion (US$2.89 billion), down 5.91 percent quarter-on-quarter, but up 9.33 percent year-on-year.

That brought the company’s annual sales to NT$360.19 billion last year, down 16.16 percent from NT$429.62 billion in 2012. It was the third consecutive year Acer reported sales contraction since 2010.

Taishin Securities Investment Advisory Co (台新投信) vice president Tony Huang (黃文清) said by telephone that Acer was unable to achieve consecutive annual sales growth because the company was too reliant on selling traditional desktops and laptops, rather than jumping into the mobile device market in a timely manner.

“It looks like the company came up with ways to make a turnaround by collaborating with e-commerce retailer PChome Online Inc (網絡家庭), but that is just the beginning,” Huang said.

On Tuesday, Acer announced that it would purchase 7 million shares of PChomePay Inc (支付連), a subsidiary of PChome Online, to tap the third-party electronic payment business.

“Acer’s sales may stay sluggish for a few more quarters until the company completes its corporate transformation plans,” Huang said.

Separately, Acer yesterday said in a filing to the Taiwan Stock Exchange that its China-based subsidiary Acer Chongqing Ltd (ACCQ, 宏碁重慶) is to merge with another subsidiary, Acer Intellectual Chongqing Ltd (AICQ, 宏碁智能重慶), within two years.

Acer said the deal would not affect shareholders’ interests, but would help strengthen the company’s management and operating efficiency.

ACCQ focuses on marketing Acer’s products, while AICQ’s works on product research and development, particularly smartphones and touch-enabled products.

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