Microsoft Receives Another Hit: Acer Ready to Give Up on Windows

Acer, a longtime Microsoft partner, is planning to focus more on its non-Windows business in an attempt to capitalize on the continuous growth of Android and Chrome OS.

The Taiwanese hardware maker has already outlined a short-term plan to get closer to these two platforms, so the company expects its Android product lineup to generate 10 to 12 percent of its revenue by the end of the year.

The Register reports that Acer President Jim Wong confirmed the new strategy during the company’s conference call with investors on Thursday, revealing that the Taiwanese firm posted an operating loss of $20.5 million (€15.3 million).

“We are trying to grow our non-Windows business as soon as possible. Android is very popular in smartphones and dominant in tablets… I also see a new market there for Chromebooks,” Wong explained.

“For the PC industry, I haven't seen light at the end of the tunnel. First, we have to sustain our market share and protect our bottom line ... and by doing tablets and smartphones right, we can be prepared for the day after tomorrow.”

Acer, one of the newest Windows 8 supporters, is one of the first companies that brought small tablets running Microsoft’s latest operating system to the market.

The company introduced the W3 8-inch Windows 8 tablet during the Computex 2013 show, but sales have so far been pretty disappointing. 

The device is equipped with an Intel Atom Z2760 Clover Trail CPU and boasts 32 GB or 64 GB of storage space, as well as a microSD card slot. Pricing begins at $379 (€379) for the entry-level model.

This is Acer's very own W3 8-inch Windows 8 tablet. Sales are not at all impressive and early reviews point to a rather disappointing overall experience.
And still, Acer is also one of the companies that criticized Microsoft and CEO Steve Ballmer for the software maker’s new direction in the hardware industry.

Afraid that Microsoft could steal the lion’s share once it becomes a hardware rival, Acer’s CEO has attacked the Redmond-based giant several times.

“They are doing something to kill the whole ecosystem. They have all this cash. They could kill everybody. Maybe they think they need to do something aggressive to compete with Apple and not rely on brands like Acer,” he said.

On the other hand, Acer executives have changed their views a little bit recently, explaining that Microsoft is doing the right thing with Windows 8 and the operating system could soon take off.

“The sense of crisis is falling,” company Chairman J. T. Wang was quoted as saying by the WSJ in May. “Even if they (Microsoft) are still doing the Surface, they do it cautiously and have become more considerate in dealing with partners in the ecosystem.”

Acer is losing ground in the PC market, according to statistics provided by Gartner.
Acer’s PC business isn’t going very well right now, according to statistics provided by research firm Gartner for the second quarter of 2013. The company’s market share in Western Europe dropped to 11.9 points, which represents a 44.70 percent decline in shipments as compared to previous year figures.

news.softpedia