Can Acer Go High-End?

Most popular for its low-cost laptops, Acer doesn’t really inspire thoughts of premium products. But building high-end hardware could be the Taiwanese vendor’s best chance as it looks for a way to rescue its struggling business.

With consumers flocking to tablets and smartphones, Acer’s once-thriving PC business has been left in the dust. Quarterly financial losses have become routine at the company and its PC shipments declined more sharply in the past year than at any other major vendor, according to IDC.

The grim situation forced CEO J.T. Wang to resign from his post last Tuesday. Acer will also cut 7 percent of its global workforce and has assembled an advisory committee to come up with a new strategy, the company announced.

Bright spots are hard to find. The Wintel model that propelled Acer for years and helped it become the second-largest PC vendor in 2009 has been falling apart amid the demand for mobile gadgets. And Windows 8 and Intel’s Ultrabook strategy have failed to resuscitate the market.

It hasn’t helped that Acer is so reliant on sales to consumers, said IDC analyst Bryan Ma. The entire PC industry has been hurt by tablets, but Dell and Hewlett-Packard have at least managed to find cover selling PCs to businesses, which are still buying them. And Lenovo has capitalized on its position in China, now the world’s largest PC market.

“Acer didn’t really have the commercial PC business to protect themselves. That’s why they were hit harder,” Ma said.

Acer — whether to its benefit or detriment — has instead gained a reputation for low-priced PCs. Even in tablets it has tried to undercut rivals — its Iconia W4, an 8-inch Windows 8.1 tablet, starts at US$329.99, while its Iconia B Android tablet goes for $129.99. The low prices have helped keep the company on consumers’ radar, but at the expense of profits.

One option for Acer is to build a brand as a higher-end PC player. It took a step in that direction last year with the Aspire S7, a Windows laptop with a slender, aluminum chassis that sells for $1,200 and up. That product and its successors have had some success for the company, with sales of 2,000 to 3,000 units per month, said James Wang, an analyst with research firm Canalys.

“I think Acer has started to learn they are able to sell some expensive products,” he said.

Selling higher-end PCs could help stop the bleeding in Acer’s finances, but with the overall PC market still shrinking it’s unlikely to help it expand in any meaningful way. “You can’t really expect vendors in desktops and notebooks to find growth,” Wang said. “You win in the market by not falling in shipments.”

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Is Lenovo Eyeing Blackberry?

Lenovo reportedly has joined the list of possible Blackberry buyers, with the firm reportedly having approached the struggling Canadian phone maker.

The Wall Street Journal reported that Lenovo, despite previously denying that it was mulling a Blackberry buy (paywalled), has been given the thumbs up to cast an eye over the Canadian company’s books before making it a possible offer.

If reports are to be believed, Lenovo has joined a list of possible buyers that includes Intel, Cisco, SAP, Google, Samsung and LG.

Specific details of Lenovo’s possible acquisition are yet to be revealed, but as a newcomer to the smartphone market Lenovo recently admitted that it is selling more smartphones than tablets and PCs in China, despite being one of the only PC makers to continue showing sales growth.

However, Lenovo’s smartphone portfolio is yet to appear the UK, and the firm hasn’t seen much success outside China. However, picking up Blackberry could help Lenovo enter the global smartphone market, and the firm could be looking to take over from Blackberry as a phone maker focused on business professionals.

Lenovo might have a hard time closing a buyout deal for Blackberry, though. Rumours about a takeover have already led to speculation that such a buyout would struggle to get approval from the US and Canada, due to the company’s Chinese ownership and the fact that Blackberry does business with sensitive parts of both governments.

Blackberry didn’t comment on a possible Lenovo buyout, but instead put out its usual vague statement. A company spokesperson said, “The special committee, with the assistance of Blackberry’s independent financial and legal advisors, is conducting a robust and thorough review of strategic alternatives.”

Lenovo declined to comment on the report.

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Intel Launches 530 Series SSD

Intel’s new SSD 530 series was detailed a while ago, but now it is finally official. Intel has formally announced the new drives in three form factors: mSATA, M.2 and 2.5-inch.

The drives will be available in a wide range of capacities, starting at 80GB, through 120GB, 180GB, 240GB, 360GB and 480GB for 2.5-inch drives. As for M.2 and mSATA drives, they will be available in 80GB, 120GB, 180GB and 360GB capacities.

Intel’s new 530 drives are based on 20nm MLC flash and the brains behind the brawn come from LSI, in the form of the SandForce SF-2281 controller. Although transfer speeds will vary depending on capacity, the fastest 530-series drives will deliver read speeds of up to 540MB/s and write at 490MB/s. As for random performance, they boast 41k IOPS in random read and 80k IOPS in random write.

Intel also says the 530-series is its most power efficient storage product to date, which is hardly surprising, but it is good news for notebook vendors who will use mSATA units.

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Will Lenovo Release A Phablet?

Windows Phone may not be taking the world by storm, but it is a very interesting alternative for anyone who’s not in love with iOS or Android.

Now it seems Redmond’s fledgling platform is about to get its first phablet, courtesy of Lenovo. The device reportedly features a quad-core application processor and a 1080p screen. The screen size is estimated at 4.7 to 5 inches.

This would make it the biggest Windows Phone device to date, although it doesn’t sound very big or “phabletish” by Android standards. The biggest currently available WP8 phone is Samsung’s Ativ Si8750, with 4.8-inch 720p screen.

Nokia is Microsoft’s top hardware partner and it has been rumored to be working on a Windows phablet of its own. However, the persistent rumors have not panned out, at least not yet.

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CPU-Z Hits Android

Popular hardware identification tool CPU-Z has hit the Google Play Store. Like the PC version, the apps is completely free and it offers tons of information about your device.

It identified the SoC on board, along with the architecture and clock speed for each core. It also figures out the exact device brand, amount of RAM, storage, battery level, status and temperature. It can tap into the device’s sensor array, which is more of a gimmick than anything useful.

It’s worth noting that it is still in beta, so there might be some kinks to work out. If you’re eager to give it a go, you can find it here. https://play.google.com/store/apps/details?id=com.cpuid.cpu_z.

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Lenovo Soars

PC sales in China and high growth in smartphones sales helped boost Lenovo’s net profit for its fiscal fourth quarter by 90% year-over-year.

For the quarter ended March 31, Lenovo’s net profit was $127 million, the company said on Thursday. Revenue shattered records and was at $7.8 billion, growing 4% from the same period last year.

In Lenovo’s home market of China, the company had an operating margin of 4.9%, an increase of 8% year-over-year. The company also saw continued profitability in its mobile devices business, which makes up 9% of its overall sales. At the end of the quarter, Lenovo’s smartphone shipments were up 206% year-over-year.

Globally, PC shipments were down 13.9% year-over-year in the quarter, the market’s steepest decline since research firm IDC began tracking the market in 1994. Lenovo itself posted flat year-over-year PC shipment growth in the period.

Smartphone and tablet popularity have hurt PC sales, according to analysts. Computers running Microsoft’s Windows 8 have also failed to drum up consumer interest in the previous two quarters.

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Lenovo, however, has managed to weather the slowdown by taking advantage of the Chinese PC market, where it has an over 30% market share. Close to half of the company’s revenue comes from the country, now the world’s largest PC market.

The company is now close to surpassing leading PC vendor HP for the top spot. The company had a 15.3% share of the market in this year’s first quarter, while HP had a 15.7% share.

But the Chinese PC maker also plans to focus more of its investment on tablets, smartphones and enterprise hardware, the company’s CEO Yang Yuanqing said in a statement. Earlier this year, Lenovo also reorganized its operations to sharpen the company’s branding and compete better in high-end products.

For the current fiscal year, Lenovo aims to ship 50 million smartphones, up from 30 million last year, Yang said Thursday in an earnings call. It aims to ship 10 million tablets, a five-fold increase from the previous fiscal year.

Most of Lenovo’s smartphone sales come from China, but the company has also begun selling handsets in the emerging markets of Russia, India, Indonesia, the Philippines and Vietnam. In addition, Lenovo is preparing to bring its smartphones to the U.S. and European markets, Yang said, without saying when.

Qualcomm Sticks With Windows RT

Tim McDonough, Vice President, Marketing at Qualcomm, was Qualcomm´s commitment to Windows RT. Ever since Microsoft announced Windows RT, ARM supporters had high hopes and Windows RT has yet to live up to some.

Tim confirmed Qualcomm´s commitment to Windows RT and future releases, saying “we are here for the long run”. He describes the partnership as the beginning of a long journey and of course Qualcomm is going to continue rolling out chips that will run great with Windows RT.

Qualcomm mentioned that Samsung ATIV and Dell XPS 10, both of which use Qualcomm’s S4 dual-core APQ8060A chips, run really nice. Tim told us that he is a real fan of both devices and that he is currently using one of them.

We also learned that Snapdragon 600, the one used in the HTC One and some versions of Samsung’s Galaxy S4, is 40 per cent faster than the S4 Pro, adding that Adreno 320 graphics core is significantly faster than the Adreno 225 used in the S4 APQ8060A chip. Another number we got is that the Adreno 330 is up to four times faster than the 225, which is a huge leap forward. Let’s not forget that Snapdragon 800, which is up to 75 per cent faster than Snapdragon S4 Pro, is also coming in mid-year, second half of 2013. The 800 will be Qualcomm’s first chip with Adreno 330 graphics.

One can easily conclude that there should be some Snapdragon 600 and 800 Windows RT convertible tablets at some point in the future. To stay on the safe side, Qualcomm just confirmed that new and exciting things are coming in the next months and quarter and they are Windows based.

We have to notice that most people in the tablet world get really excited talking about convertible tablets in all shapes and sizes, as the physical keyboard is definitely an accessory you want to have.

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Windows RT Devices To Drop In Price

Prices of Windows RT devices have started to decline, signaling an attempt by PC makers to quickly clear out stock after poor adoption of tablets and convertibles with the operating system.

Microsoft released Windows RT for ARM-based devices and Windows 8 for Intel-based devices in October last year. The price drop is an acknowledgement that Windows RT has failed, analysts said.

Prices of popular products usually don’t fall, but Windows RT devices were not in demand, and prices fell, analysts said.

The starting price for Dell’s XPS 10 is now US$449 for a 32GB model, scalping $50 off the original launch price. The 64GB model is $499, which is a drop from the original $599 price. By comparison, the price of the Latitude 10 tablet with Intel processors and Microsoft’s Windows 8 OS remained stable at $499.

Asus’ VivoTab RT, which is largely sold through retailers, is being offered by Amazon.com for $382 with 32GB of storage, which is a heavy discount from the $599 launch price. Retailers like Best Buy, Staples and Office Depot have also dropped the price of the tablet by $50, now selling it for $549.

Newegg is listing VivoTab RT as having been discontinued. Asus did not respond to a request to comment on whether the company was still offering the tablet.

Lenovo is offering the IdeaPad Yoga 11 for $599 as part of a seven-day deal, which is a drop from the original $799 price. However, TigerDirect is offering an IdeaPad Yoga 11 model for $599 on its website, while Amazon is selling a model for $499.99.

Samsung did not ship its Windows RT tablet, Ativ Tab, to the U.S. market.

However, the starting price of Microsoft’s Surface RT remained consistent at $499 on its online store. Microsoft also offers Lenovo’s IdeaPad Yoga 11 through its store, but has stopped offering tablets like the VivoTab RT on its website. The company last month said it stocks its store with RT devices based on availability and demand.

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Lenovo To Buy NEC’s Mobile Phone Unit

Japan’s NEC Corp is in negotiations to sell its struggling mobile phone unit to its PC venture partner Lenovo Group Ltd, a source familiar with the discussions said, confirming media reports of the negotiations.

NEC is also in talks with potential domestic buyers, the source said on condition that he wasn’t identified.

NEC has until now said its mobile business is an important part of its overall operations. But after two years of losses the company is shedding assets to bolster profitability.

“Amid the rapidly changing market we are considering a number of ways to bolster the competitiveness of our mobile phone business, but nothing has been decided,” NEC said in a statement through the Tokyo Stock Exchange on Friday in response to the media reports.

Lenovo officials could not be immediately reached for comment.

Japanese phone makers have struggled to gain traction overseas inmarkets dominated by Samsung Electronics Co Ltd and Apple Inc where they are also being challenged by upcoming Chinese makers. In Japan, the two foreign giants are whittling down their share of cell phone sales.

Last October, NEC cut its mobile phone sales target for the year ending March to 4.3 million from a previous estimate of 5 million units. Lenovo, the world’s No.2 maker of PCs, is cranking up overseas expansion in smartphones after solid growth in China.

Japan’s biggest cell phone maker, Sony Corp, is vying with China’s Huawei Technology Co and ZTE Corp to be No.3 in the global smartphone market.

NEC also plans to sell its mobile services subsidiary NEC Mobiling Ltd for as much as $850 million, separate sources told Reuters this month.

Marubeni Corp’s telecommunications unit and TD Mobile, a joint venture between Toyota Tsusho Corp and Denso Corp, are vying for the 51 percent stake, the sources said.

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HP Looks Beyond Windows

Hewlett-Packard has announced the availability of its latest Pavilion laptop with Google’s Chrome OS as the PC maker attempts to improve laptop sales by offering an alternative to the Windows OS.

The Pavilion 14 Chromebook has a 14-inch screen and runs on a dual-core Intel processor. The laptop is roughly 21 millimeters thick, and weighs 1.8 kilograms. It offers just over four hours of battery life, said David Conrad, director for product management at HP’s consumer products group.

The laptop is expected to ship on Monday in the U.S. starting at $329.99. The company did not immediately provide worldwide availability information.

HP wanted to widen its product offerings and the new Chromebook is targeted at those who do most of their computing on the Web, Conrad said.

“It’s really about choice. We have a very wide offering,” Conrad said. “We think the time is right for an additional choice for people to have a gateway to their Google digital lifestyle.”

The laptop has only 16GB of solid-state drive storage, but will offer 100GB of free Google Drive storage for two years.

The Chromebook has the same design as HP’s other PC offerings, which mostly run on Windows and have standard-capacity hard drives. But, with a lot of data moving to the cloud, the Chromebook provides a different usage model.

“We see this as another device to be used around the house. It’s easily managed,” Conrad said.

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