Taipei, Friday, April 29, 2016 07:57 (GMT+8)
partly cloudy
Taipei
24°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
  • Cypress subsidiary Deca to receive US$60 million investment from ASE

    Bits + chips | 10h 35min ago

  • Digitimes Research: Taiwan makers ship 7.35 million LCD TVs in 1Q16

    Displays | 11h 7min ago

  • Macronix posts another quarter of losses

    Bits + chips | 11h 9min ago

  • Digitimes Research: Woskan, iStaging developing VR for use in real estate marketing

    Before Going to Press | 10h 55min ago

  • Transcend 1Q16 net profits fall 25%

    Before Going to Press | 10h 58min ago

  • Senao Networks nets NT$3.21 per share for 1Q16

    Before Going to Press | 11h 25min ago

  • China sets 2020 targets for robot industry development

    Before Going to Press | 11h 26min ago

  • Nintendo to stop production of Wii U in March 2018

    Before Going to Press | 11h 27min ago

  • Chip orders for iPhone SE rise in 2Q16

    Before Going to Press | 11h 28min ago

  • Global Lighting Technologies nets NT$1.33 per share for 1Q16

    Before Going to Press | 11h 32min ago

  • AUO sees rebounding operations in March, says chairman

    Before Going to Press | 11h 33min ago

  • Motech Industries lowers price for new shares issued for capital expansion

    Before Going to Press | 11h 34min ago

  • Gamania Digital Entertainment nets NT$0.12 per share for 1Q16

    Before Going to Press | 11h 34min ago

  • Danen Technology suffers net loss per share of NT$0.21 for 1Q16

    Before Going to Press | 11h 36min ago

  • Notebook-use thermal module makers step into server applications

    Before Going to Press | 11h 37min ago

  • Giantplus Technology posts 1Q16 net EPS of NT$0.30

    Before Going to Press | 11h 38min ago

  • Adlink nets NT$0.26 per share for 1Q16

    Before Going to Press | 11h 39min ago

Pause
 | 
View more
UMC
Wireless broadband developments in Southeast Asia markets
Analysis of China revised domestic semiconductor industry goals
  • Wireless broadband developments in Southeast Asia markets

    As of 2013, the 10 ASEAN nations had a total of over 700 million mobile subscriptions, with the CAGR from 2003-2013 reaching 24%. This Digitimes Research Special Report analyzes the various mobile broadband markets in ASEAN and looks at the respective trends in 4G LTE development for those markets.

  • 2015 global tablet demand forecast

    This Digitimes Research Special Report provides a 2015 forecast for the global tablet market and analyzes the strategies of key market players such as Google, Apple, Intel, and Microsoft.

  • 2015 China smartphone panel trend forecast

    This Digitimes Research Special Report analyzes the strategies of key China-based major panel makers BOE, Tianma and IVO for attacking the different market segments through technology and pricing, and their relationship to local vendors Huawei, Lenovo, ZTE, Xiaomi and Coolpad.