ac-c7-promolanding-1Taiwanese computer manufacturer Acer reported a surprising second quarter loss caused by slowing revenue and increased costs, with quarterly revenue down more than 19 percent year over year. It seems that the worldwide shift away from PCs may be hurting Acer’s core business.

According to Jim Wang, Acer’s President, the company’s plan to boost revenue is to build more Chromebooks, because Windows isn’t cool anymore.

“We are trying to grow our non-Windows business as soon as possible,” Wang told investors during the company’s earnings call, according to a report by the Wall Street Journal. “Android is very popular in smartphones and dominant in tablets…I also see a new market there for Chromebooks.”

It’s unclear whether or not Google is providing any further incentives or assistance for Acer when it comes to expanding its Chromebook lineup.

Wang’s statement comes as Microsoft highlighted the poorly-reviewed Acer Iconia W3 tablet in its latest advertisement attacking the iPad mini.

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  • Christopher Budd

    To a degree I think the Surface is coming home to roost now.

    Acer was one of the ones that was critical of the Surface viewing it as undercutting the OEMs if I recall correctly.

    So this move may be driven as much by retaliation as business sense.

    I’ll say this though: Chromebooks run Chrome OS which is LINUX-based. After 15 years of people proclaiming the advent of LINUX on the desktop, I think we’re finally seeing it.

    I wonder if Microsoft will start trying to get patent fees from Chromebook makers the way they’ve been with Android makers.

    • Ryan Parrish
    • Guest

      It’s pretty sad when the only place I see a surface in Seattle or Redmond is at the Microsoft store. I think Acer is cutting the cord and looking to make money.

    • Guest

      Acer had already announced it was working with Google on Chromebook prior to Surface. So your retaliation argument doesn’t really work. They’re a smaller player in PCs, whose sales currently suck, and see a fast growing market for tablets where Android obviously has far more momentum than W8. It doesn’t help that their W8 efforts have been frankly terrible.

    • SPM

      It is just money. Selling Windows is losing them money. Selling Chromebooks is making them money. It is as simple as that.

  • Guest

    Windows RT is the target of the cutbacks, not Windows 8.

    At $349, or $199 for my students, Surface RT has pretty much sewn up the market for Mid-Function ‘blets (MFTs). The competition is in Limited-Function ‘blets (LFTs) such as iPad and Chromebook and in Full-Function ‘bletes (FFTs) such as Surface Pro.

    • SPM

      There isn’t a market for Windows RT. Microsoft is supposed to have made 6 million Surface RT devices and only sold 150,000 so far. Windows 8 tablrts are doing a little better, but not much – they are supposed to have sold 1.5 million in total so far, which means they are failing.

      The bright spot is Windows 8 laptops and PC desktops. Because Windows 8 is being offered as a forced upgrade to those who previously used Windows and needs to upgrade, the monopoly lock-in Microsoft has on the PC market means it is only 14% down in total sales over last year. A lot of those devices are of course downgraded to Windows 7, but they are chalked up as a Windows 8 sale. Microsoft has also sold a lot of Windows 8 licenses to OEMs which account for a large number of the 100 million licenses Microsoft claims to have sold. However half of these seem to be sitting on the OEM’s shelves due to poor sales of Windows 8 devices.

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