Acer's first-half net profit falls 85 percent

Taiwanese PC and electronics device manufacturer Acer Inc. has seen its revenues take a beating with a drop of about 35 percent in the first half of this year compared to the same period last year, an Acer biannual report said.

Revenues stood at US$1.04 billion in the first half of 2001 as opposed to $1.6 billion in the same period last year. Net profit saw an even sharper plunge from $23.7 million this year, down from $164 million in 2000 -- a dip of 85 percent, the report added.

"All PC vendors are going to be hurting this year," said Manny Lopez, an International Data Corp. (IDC) market analyst based in Hong Kong, adding that Acer is in pain due to the saturated U.S. and European markets, which are its largest markets.

Lopez noted that while the Asia-Pacific region was also affected with tumbling sales in the first half of 2001, the region's revenue dip was not as harsh due to the large Chinese market and the support of its Taiwan buyers. "Forty-eight percent of Acer Asia-Pacific sales come from China and Taiwan," he said. "China is just a big market for everyone and Acer is a hometown favorite in Taiwan."

Citing the continued decay of the global PC market as the cause of its declining revenues, Acer aims to reduce losses rather than increase revenues and plans to deliver results by the fourth quarter of this year, said Acer Chief Financial Officer (CFO) Philip Peng.

Acer is also hoping to increase sales with Acer Laboratories Inc. (ALi) unveiling a new chipset for Intel Corp.'s Pentium 4 processor that uses DDR SDRAM (Double Data Rate Synchronous Dynamic Random Access Memory).

According to IDC's Lopez, most PC vendors are banking on 2002 to be the light at the end of the tunnel -- all are hoping that the worldwide PC markets will have bottomed out by then and that the U.S.economy will have picked up the pace.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephanie Sim

Computerworld
Show Comments

Essentials

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?