Acer has revealed a significant decline in their first quarter profits as the
economic downturn harms sales. The company’s income fell by nearly £20 million in the past year, from £60 million in the first quarter of 2008 to £40 million in the most recent quarter. The figures fell short of predictions that
Acer would post a profit of £43.6 million for the first quarter.
The slump in profits can be attributed to the trend towards cheaper models in the
laptop PC industry. The massive increase in the popularity of
netbooks has reduced the average prices of a manufacturer’s
notebooks and has harmed profit margins.
The news follows a 6.1 per cent decline in operating profit the previous year, yet Acer has been able to continue its growth, winning an increasing share of the market. Acer is now the world’s second largest seller of laptop
computers, behind only
Hewlett Packard, whilst Chairman J. T. Wang has targeted top spot by 2011.
Despite the decreased profits, increased sales are forecast for Acer this year, with the shipments of their
Aspire One netbook set to triple to 15 million this year according to J. T. Wang.