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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.”
Sprint To Offer Ultrabooks
Sprint has become the first U.S. mobile operator to offer an ultrabook, which is being sold with a 3G/4G mobile hotspot device at no added cost.
Sprint and Lenovo announced the 13.3-in. IdeaPad U310 ultrabook with a hotspot device for $799.99, subject to a two-year Sprint mobile broadband service agreement, the companies said. Three months of broadband service will be available for free.
The hotspot is either a MiFi 3G/4G mobile hotspot by Novatel Wireless or the Overdrive Pro 3G/4G mobile hotspot by Sierra Wireless. Data plans for the hotspot start at $35 a month for 3GB, or $50 for 6GB.
Sprint said the offer is focused on small business users and students. It will be available through Sprint telesales at 800-Sprint1, Sprint business sales and business partners and on the Sprint ultrabook Web site.
The IdeaPad U310 features Lenovo RapidBoot, allowing it to resume from hibernate status in less than seven seconds, and BootShield for fast booting even with multiple apps installed.
Intel To Unleash Shark Bay In 2013
Intel used a saucy word to describe the 2013 Haswell based notebook platform. It tells us that Shark Bay should reinvigorate the notebook experience. Revive would seem to be the more appropriate word in this case.
Shark Bay promises more sensors, faster resume times, Intel smart connect as well as connected stand by. All this will be present on at least some Shark Bay powered notebooks.
Intel also wants to bring more improved connected capabilities to 2013 notebooks. It promises NFC support, Thunderbolt paired up with now standard Intel Wireless display.
With more fuzz about sensors, NFC, all-day battery and thin and light approach Intel’s notebook of the future is basically a tablet with a keyboard that probably costs a bit more money and offers traditional PC functionality.