Acer vows to put losses behind it, turn a profit this year

By Ted Chen, The China Post

TAIPEI, Taiwan — Acer yesterday vowed to end it streak of losses from the past two years by revaluating and consolidating its portfolio of brands, the company stated at a press conference.

“I hate incurring losses,” said Acer CEO and Chairman J.T. Wang (王振堂) yesterday.

The company’s main objective for 2013 will be the consolidation of its portfolio of brands, which is comprised of Gateway, Packard Bell, eMachines, and ETEN (倚天資訊). Acer’s first move is to write off the eMachines brand, recognizing a loss of NT$3.5 billion in impairment of intangible assets.

EMachines was acquired by Acer in 2007 for US$710 million.

The company will focus on Acer as its main global brand for the major product categories touch-enabled laptops and mobile devices such as smartphones and tablet computers.

Acer plans to revitalize its remaining brands of Gateway and Packard-Bell, with the former targeted at non-North American lower-end markets and the latter focusing on the North American market. The Acer brand will be tasked with competing with products of all price ranges

Institutional investors predict that the write-off of the eMachines brand will impact Acer adversely, and bring down the company’s earnings per share to minus NT$1.01.

The company is poised to increase its market share in the tablet computer market, with the launch of the ICONIA B, aggressively priced at the price range of US$120 to US$140.