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Tuesday, June 28, 2011

Acer reducing 3Q11 shipment forecast; company founder optimistic about inventory clearing progress

Upstream component suppliers of Acer have recently been notified by Acer to reduce their inventory preparation for the third quarter as Acer has reduced its notebook shipment forecast from originally 6.4 million units to 5.4 million units, indicating that Acer is still working on digesting its inventories, according to sources at upstream component players.

Commenting on the report, Acer founder Stan Shih pointed out that the company still need some times to get used to the state after the reorganization and he believes that Acer's executives are heading in the right direction. He also asked market watchers and investors to give Acer more time.

Although Acer has reduced its shipment forecast by about 15%, the sources pointed out that the reduced orders are mainly netbooks, accounting for about 80% of the volume.

The sources noted that Acer is expected to ship 1.45-1.5 million notebooks in July and 1.9-2 million units in August with shipments in September to drop only slightly from August, helping the company to complete its inventory clearing by the end of the third quarter.

In addition to the inventory, Acer is also adjusting its operation model from pushing volume to profitability. For netbooks, which is no longer a mainstream product in the IT market, the company will only maintain a certain shipment volume, but will turn its focus toward cloud computing.

Acer shipped a total of 800,000 tablet PCs from the launch of its tablet PC to the end of June, and its new 7-inch model will show up in the third quarter. Acer forecasts it will ship 800,000 tablet PCs in the third quarter, helping it to achieve annual shipments of 2.5-3 million units in 2011.

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