Taipei, Oct.24, 2012 (CENS)--Acer Inc. recently issued an unexpectedly dismal financial report for the third quarter, with consolidated revenue dropping 5.6% quarter on quarter (QoQ) to NT$104.4 billion (US$3.48 billion) and earnings per share (EPS) reaching only NT$0.03 (US$0.001). For the first three quarters of 2012, Acer’s net profit amounted to NT$455 million (US$15.17 million) and EPS were NT$0.17 (US$0.005) in EPS.
Acer's operating margin in the third quarter was also disappointing, dropping from 0.4% in the second quarter to 0.33%. Net profit for the three-month period reached NT$68 million (US$2.27 million), up 21.42% QoQ.
The global PC industry has been on a downward trend recently. Acer, Intel, and Microsoft all reported lower-than-expected financial results last week.
Intel's CEO, Paul Otellini, noted that due to pessimistic market expectations, PC customers have generally been keeping their inventory levels under strict control; as a result, the growth in PC sales in the fourth quarter is expected to reach only half the normal seasonal figure. Even the global release of Windows 8, scheduled for Oct. 26, may not boost the PC industry as much as originally expected.
Institutional investors believe that due to the large number of low-priced tablet PCs (including the iPad mini) that are scheduled for release at the end of the year, the Christmas holiday market is likely to be significantly fragmented. In addition, the substantial changes incorporated in Windows 8 may require some time for customers to adapt, and this is likely to push the "Windows 8 effect" back to 2013.
(by Andrew Wang)
