Acer reports net loss in Q2 on research costs, DRAM prices

The company's revenue declined by over 19 percent year-over-year in the quarter

Taiwanese PC maker Acer reported a net loss in the second quarter, attributing it to the company's growing investment in product design and the recent rise in DRAM prices.

Acer's net loss was NT$343 million (US$11.4 million), down from a profit of NT$56 million in the same period a year ago. Revenue for the quarter declined year-over-year by a little over 19 percent, reaching NT$89.4 billion.

During the quarter, Acer saw its PC shipments fall by 32 percent year-over-year, according to research firm IDC. This marked the biggest shipment drop among the world's top five PC vendors.

The company has struggled to lift its earnings amid a long slump in PC shipments, at a time when smartphone and tablet sales are surging. In the quarter, the company faced weak consumer demand for its PCs, including the company's higher-priced ultrabooks, according to IDC.

Acer currently holds about 8 percent share of the world's PC market and makes most of its revenue through notebook sales. But the company has tried to diversity its products. In June, at Taipei's Computex trade show, Acer showed off a 8-inch Windows 8 tablet and a 5.7-inch Android smartphone.

At the same time, the company is investing more in research to produce innovative products that can set itself apart from the competition. It is, for example, investing in the 'look and feel' and user interfaces of products.

Microsoft's Windows 8 OS has done little to help drive PC sales for companies such as Acer because of its weak reception, according to analysts. As a result, PC makers appear to be experimenting with bringing Google's Android operating system to the PC.

At Computex, Acer unveiled a 21.5-inch all-in-one desktop running Android. The product will arrive in September or October.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesacerfinancial resultshardware systemslaptopsdesktop pcs

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

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.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

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?