Acer reduces 2011 tablet and notebook shipment goals

Acer reduces 2011 tablet shipment goal to 2.5m units
Acer reduces 2011 tablet shipment goal to 2.5m units
New cuts are reportedly a result of company restructuring and fierce competition in the tablet market

The Taiwanese computer manufacturer Acer has announced that it will be cutting its tablet shipment expectations to at least 2.5 million units this year. This is a far cry from its previous prediction of up to 7 million units shipped by the end of 2011.

The large reduction in shipment numbers, according to CENS.com, is due to the “excessively high inventory level at distributors at year-end due to fierce competition.” In other words, Acer is adjusting its own levels as a response to the increased competition from rival tablet companies in order to avoid high inventory risks.

Still, Acer CEO J.T. Wang is expecting the second half of this year to be better than the first half as the company restructuring would be closer to completion. He is confident that the Google Android platform can seriously compete with the still-dominant iPad.

Acer notebook shipment levels are reducing as well for Q3 2011 from 6.4 million to 5.4 million units, according to a DigiTimes report. Reportedly, Acer founder Stan Shih is citing the volume decrease as a result of the company reorganization. About 1.45 to 1.5 million and 1.2 to 2 million notebooks will ship this coming July and August, respectively. Shih has asked investors to “give Acer more time” as the company still needs to get used to the major internal reshuffling, says DigiTimes.

Acer as a whole has had a rough 2011 so far, having missed sales numbers while simultaneously experiencing drops in company shares. We will have to wait and see if Acer’s new plan to maximize profitability over volume will work in the long run for the scrambling manufacturer.

Source(s)

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Author: Allen Ngo, 2011-06-28 (Update: 2012-05-26)