Taipei, Thursday, November 27, 2014 08:08 (GMT+8)
light rain
Taipei
22°C
Commentary: Acer founder had hinted of CEO step down
Staff reporter, DIGITIMES, Taipei [Friday 1 April 2011]

Before the March 31 announcement of Acer CEO and president Gianfranco Lanci's resignation, Stan Shih founder and shareholder of Acer had made some comments at a press conference on March 29 in Taiwan, already hinting that the CEO may step down in near future.

Commenting on Acer's lower-than-expected performance for two consecutive quarters at a press conference on March 29, Shih pointed out the the rise of tablet PCs and smartphones to become new trends, and the changes in the IT market's ecosystem have already far surpassed what Acer's executives can handle, and that Acer's winning strategy from the past had already lost its effectiveness, and the company needed to implement a change in direction.

Shih pointed out that Acer was originally set to become the largest notebook vendor in 2011 and be the leading PC vendor in 2012, and the strategy was meant to increase the company's profitability through enlarging the company's economic scale; however, since the fact that economic scale does not necessary equal profitability, implementing a successful transformation will be much more important than becoming number one. Winning in shipment numbers, but losing profitability is meaningless.

However, Shih pointed out that he has already stepped out of Acer's operations and was only giving suggestions as a board member. He did not give any clear pointers about how Acer could achieve victory in competition for the "smart online device" segment, saying that Acer's executives are the ones who need to be concerned with that, and that they will need some time to reach a consensus.

Shih once said that a successful enterprise needs to start a reorganization every 10 years. It has been around 10 years since Acer spun off Wistron in 2001, and Shih commented that Acer needs to recreate itself since tablet PCs are a completely different ecosystem.

Shih believes that Acer should face reality and observe the changes in the ecosystem, especially by acknowledging that the appearance of tablet PCs and smartphones has already significantly changed the IT industry. Tablet PCs are attracting consumers who do not use PCs, to start using PCs, and the changes will definitely impact notebook demand; however, it could also be an opportunity for makers.

Shih pointed out that the IT industry should thank Apple for creating a new path and attracting consumers to accept tablet PCs, Acer tried to push tablet PC products in 2000, but failed. Apple has opened up a road for players to follow, and so he believes it should be much easier for others to succeed.

Shih also noted that it is still too early to judge the winner of the tablet PC market, and that Acer still has a good basis to allow a transformation, therefore he is not concerned.

Realtime news
  • TPV sees LCD TV and monitor shipments increase 7.5% in 3Q14

    Displays | 9h 44min ago

  • China market: Smartphone vendors to streamline product lines

    Mobile + telecom | 9h 54min ago

  • Oppo, Gionee increase AMOLED handset panel orders to Samsung

    Displays | 11h 23min ago

  • China market: Over 5.4 million consumer tablets sold in 3Q14, says Analysys

    IT + CE | 11h 42min ago

  • Epistar sees decreasing capacity utilization

    LED | 12h 3min ago

  • Huawei denies filing lawsuit against competitors, says report

    Before Going to Press | 9h 50min ago

  • Samsung Electro-Mechanics to expand businesses in China in 2015, says paper

    Before Going to Press | 9h 50min ago

  • Innolux clarifies Chi Mei Lighting debt issues, looking to secure loan from Taiwan banks

    Before Going to Press | 10h 7min ago

  • China market: Local brands to engage in patent wars

    Before Going to Press | 11h 25min ago

  • Most motherboard players turn to defend gross margins in 2015

    Before Going to Press | 11h 41min ago

  • New Microsoft Surface tablet to be available in 1Q15

    Before Going to Press | 12h 2min ago

  • Taiwan market: 4G user base tops 2.1 million at end of October, says NCC

    Before Going to Press | Nov 26, 19:33

  • China market: Over 5.4 million consumer tablets sold in 3Q14, says Analysys

    Before Going to Press | Nov 26, 19:17

  • Inotera orders equipment from Applied Materials

    Before Going to Press | Nov 26, 19:15

  • Co-Tech looking to diversify products

    Before Going to Press | Nov 26, 19:15

  • Micron, Winbond team up for serial NOR flash

    Before Going to Press | Nov 26, 19:15

  • iPhone chip orders slow down, say IC designers

    Before Going to Press | Nov 26, 19:14

Pause
 | 
View more
MSI X99S GAMING 9 AC
Demand and supply trends in the global sapphire industry, 2014-2015
Greater China touch panel shipment forecast through 2015
  • 2014 global high brightness LED market, trends and shipment forecast

    For the global LED lighting market, the market size will reach US$25.82 billion in 2014 or a market penetration rate of 23.4%. This is attributable to exponential shipment growth for light bulbs, tubes, and directional lamps.

  • Greater China touch panel shipment forecast through 2015

    This Special Report provides forecasts through 2015 for Greater China touch panel shipments with breakdowns based on technology (glass, film, resistive), application (smartphone, NB and tablet) and by firm.

  • 2014 global tablet demand forecast

    This report analyzes the main players, their strategies and shipments forecasts for 2014, as well as other factors contributing to either growth or decline in various segments within the tablet market, with a particular focus on Apple, Google, Samsung, and Microsoft, along with whitebox vendors.