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Acer’s Downward Spiral Continues, CEO Resigns Now

Acer hasn’t exactly been doing great in the past few years. The company, once a very profitable PC vendor, has been on a downward spiral, reporting quarterly losses and declining sales. Amidst all this chaos, Acer’s CEO J.T. Wang has now decided to step down from his position.


J.T. Wang

PC sales have generally been on a decline ever since smartphones and tablets became mainstream devices. Consumers increasingly prefer a handset or a lighter tablet over a bulky PC, even if it is a laptop. The result of this is that mainstream PC vendors such as HP, Dell, Acer and Lenovo have taken quite a hit to their revenues.

During Q3 of this year, for instance, Acer reported a quarterly loss of $446 million. This was probably a result of nearly 35% decline in the volume of PCs sold by the company. The key problem here, highlighted by many analysts in the past, is that Acer hasn’t changed fast enough to keep pace with the tech world. PCs are no longer a profitable market and if the current PC vendors want to exist, it must expand to the smartphone and tablet arena, one way or the other.

J.T. Wang, who had been a vocal critic of Microsoft’s decision to launch Surface tablets, is due to step down from the position of Acer’s CEO on January 1st, 2014. He will be succeeded by the current Acer President Jim Wong. However, the change in the top management of the company doesn’t lend much hope to its future prospects and unless Acer comes up with something that is able to pique an average consumer’s interest, the company’s decline will continue.

Source: Acer
Courtesy: The Verge

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