Acer posts first loss in a decade

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Seems like HP had the right idea when it ditched its PC division after all – prolific Taiwanese manufacturer Acer has posted its first loss in a decade, citing that making a full-year profit will be “impossible”, according to a report in Bloomberg. The company posted a NT$6.8 billion ($234 million) second quarter loss, which is a far cry from the NT$3.6 billion profit a year earlier. The loss in profits is party due to the miserable global economy and increasing competition from Apple’s iPad offerings. Acer has also cut jobs and has taken losses on products in storage because of declining sales.

According to Gartner, Acer fell from the number two spot (next to HP) in Q2 2010 to number four. And although tablets are holding the public’s fascination, J.T. Wang, chairman of Acer said that “the fever for tablets is going down and the notebook is regaining the interest of the consumer.”

Source: Bloomberg