Acer plans radical product downsizing

Axe is coming to its product range, bringing some radical chopping
Darren Allan

December 15, 2011
Acer Logo

Acer is set to chop its various ranges of products down hugely, starting next year.

The entire PC industry is struggling in the face of the continued global economic turmoil of the past few years, and has also faced erosion from the spike in the sales of tablets, which the iPad has driven to become very popular gadgets.

So it’s no surprise Acer is looking to streamline its product offerings, given that it has suffered more than most in the PC market this year.

Gartner figures over the summer showed Acer fall from the third biggest PC manufacturer in the world to the fourth, overtaken by Lenovo. Acer saw its 14% market share shrink to 11%.

So it would seem action needs to be taken, and drastic action at that. According to DigiTimes, chairman JT Wang has ordered an evaluation of every Acer product with a view to shedding two-thirds of them.

That won’t happen overnight of course, or even over next year, as Wang expects the process to take place gradually over three years.

The chopper won’t just be taken to the PC and laptop range, either, with other devices staring up at a sword of damocles from 2012 onwards, too.

In 2012, it’s expected that a third of current product lines will disappear. Acer does manufacture a lot of stuff, mind, and some small variations in spec, many of which will be swept away without too much bother.

However, a slashing to the magnitude of 66% is still quite a prospect.

Despite all this, Wang is still confident sales will rise next year, and envisages the price of Ultrabooks dropping to a more affordable level, perhaps helping push back the tide of tablets as Intel is hoping.

Acer has certainly made more of an effort than other manufacturers to keep the price of its initial Ultrabook offering, the S3, down to a more palatable level.


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