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Acer Chief: There Are Too Many PC Companies

By - Source: Tom's Hardware US | B 36 comments

For Acer, it's just basic business.

Acer's chief executive Gianfranco Lanci expressed in a recent interview that he feels that there is too much competition in the PC market. More specifically, he believes that fewer players in the PC making market would lead to greater profits.

While that may sound like Business 101, Lanci took his insight further by saying that companies such as Acer need to look at buying out other computer companies in order to become more profitable.

"This can be a very good industry in terms of making profits if you think about there being four or five players instead of seven or eight as you see today," Mr. Lanci said to the New York Times. "There is not enough profit in the chain to maintain all these players today."

Lanci's logic is that though acquisitions, companies will become larger and thus be able to negotiate for better prices for computer components from suppliers and builders Quanta and Compal.

Acer's already played the buying game with its acquisitions of eMachines, Gateway and Packard Bell, which may have played a part in the company's rise now to rival Dell for the number two spot worldwide, behind Hewlett-Packard.

One thing is for certain, and that is Acer's not afraid to manage different brands it acquires as long as it's the same force pulling the strings in the background.

Lanci said in a previous interview, "One brand is almost impossible, if you want the right product and precision for the right customer profile."

From the sound of the Lanci's statements, Acer isn't finished yet on its mergers and acquisitions roll. While he wouldn't confirm what the company's next move may be, he did add, "I think we need to be part of this consolidation in some way."

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Top Comments
  • 26 Hide
    mavroxur , July 8, 2009 6:26 PM
    Quote:
    Acer’s chief executive Gianfranco Lanci expressed in a recent interview that he feels that there is too much competition in the PC market





    ANTI-COMPETETIVE! Get 'em EU!
  • 13 Hide
    Parrdacc , July 8, 2009 6:23 PM
    Gee. Let me think. OH nothing new here. Of course Acer wants to say "he believes that fewer players in the PC making market would lead to greater profits." Well, duh. However while good for those few companies that will still exist. It does leave the overall Joe with limited choices. So imho, the more the merrier.
Other Comments
  • 13 Hide
    Parrdacc , July 8, 2009 6:23 PM
    Gee. Let me think. OH nothing new here. Of course Acer wants to say "he believes that fewer players in the PC making market would lead to greater profits." Well, duh. However while good for those few companies that will still exist. It does leave the overall Joe with limited choices. So imho, the more the merrier.
  • Display all 36 comments.
  • -2 Hide
    sublifer , July 8, 2009 6:23 PM
    maybe HP is gonna buy acer
    Quote:
    "I think we need to be part of this consolidation in some way."
  • 7 Hide
    cadder , July 8, 2009 6:24 PM
    Acer could improve their own position by changing their business practices and trying to support their customers better.
  • 26 Hide
    mavroxur , July 8, 2009 6:26 PM
    Quote:
    Acer’s chief executive Gianfranco Lanci expressed in a recent interview that he feels that there is too much competition in the PC market





    ANTI-COMPETETIVE! Get 'em EU!
  • 8 Hide
    ColMirage , July 8, 2009 6:30 PM
    Self built > Prebuilt. Unless you're really short on time or there's some sort of blazing hot deal.
  • 4 Hide
    NuclearShadow , July 8, 2009 6:31 PM
    Less competition means higher prices for the consumer. If Acer gets what it wants it will have to try to make up for the costs of buying out the others. Don't think that this won't effect those of us who build our own PCs either because the "negotiate for better prices for computer components" Is really them saying "your forced to deal with us so we want that hardware for dirt cheap" This in turn will make the hardware companies rise the prices of their hardware to make of for its loss of profits which means retailers like Newegg will have to pay more and then that extra cost ends with us.
  • 4 Hide
    Parrdacc , July 8, 2009 6:31 PM
    mavroxurANTI-COMPETETIVE! Get 'em EU!


    LOL! Well that answers my question about who the EU will go after once they are done with M$.
  • 1 Hide
    LUCKYSTARWZ , July 8, 2009 6:43 PM
    self built is always good, but sometimes u can't ignore cheap deals on Used PCs like on craig list, especially if it was a self built.
  • 8 Hide
    hillarymakesmecry , July 8, 2009 6:46 PM
    Aww. Is poor little ACER having trouble competeing?

    I'm pretty sure 99% of the world would like even more companies to drive prices even lower.

    In my opinion no one company should control more than 10% of ANY MARKET. If so, split them up. This 'Too big to fail' garbage we got fed by the government is ridiculous. Never let any company get too big to fail.
  • 2 Hide
    war2k9 , July 8, 2009 6:53 PM
    Acer make a mac.
  • 2 Hide
    leon2006 , July 8, 2009 7:05 PM
    Then close ACER. That will fix his problem
  • 2 Hide
    chaohsiangchen , July 8, 2009 7:07 PM
    ParrdaccLOL! Well that answers my question about who the EU will go after once they are done with M$.


    EU prefers to go after American companies. That's why Acer hired this Italian CEO in order to expand in Europe.
  • 0 Hide
    verrul , July 8, 2009 7:12 PM
    acer still operates emachines and acer brand both sell different computers. pb and gateway are gone as brand names
  • 1 Hide
    jacobdrj , July 8, 2009 7:22 PM
    I agree, Acer should fold. I still can't forgive them for the crap they put out in the 90's... even if their stuff now is pretty good.
  • 1 Hide
    gcolefla , July 8, 2009 7:24 PM
    Maybe if a PC company could make a laptop that was different than all of the other companies. Personally I am looking for the base macbook pro 13" from a pc company. I imagine it could be sold for $799 since it has a 9400m gt and a decent dual core processor. All of the pc laptop companies are just making the same plastic, heavy, and thick junk. I haven't seen much innovation in the physical pc laptop case in years. Dell almost has this laptop with the studio 14z, but it has no optical drive and it is still 1.25" towards the back of the machine. Also, a pc company needs to come along that offers really affordable warranties or have a two year one standard. On most sites I look at, a 2 year warranty can cost 1/3 the cost of the whole machine. A $700 laptop can easily become a $950 laptop with an extra year of warranty on it.
  • 2 Hide
    blackened144 , July 8, 2009 7:25 PM
    ParrdaccLOL! Well that answers my question about who the EU will go after once they are done with M$.

    Acer has nowhere near the amount of money needed to make the EU go after them. Their net profit last year was only "about USD60.29 million.". If that M becomes a B, then they better watch out for the EU.
  • 3 Hide
    fargom , July 8, 2009 7:51 PM
    ColMirageSelf built > Prebuilt. Unless you're really short on time or there's some sort of blazing hot deal.


    From a performance standpoint, of course. However, the real money is made with prebuilt computers that are sold to companies/schools/governments around the world.

    The homebuilt enthusiast market is a very VERY small share of global computer sales.
  • -1 Hide
    crom , July 8, 2009 8:03 PM
    gcoleflaMaybe if a PC company could make a laptop that was different than all of the other companies. Personally I am looking for the base macbook pro 13" from a pc company. I imagine it could be sold for $799 since it has a 9400m gt and a decent dual core processor. All of the pc laptop companies are just making the same plastic, heavy, and thick junk. I haven't seen much innovation in the physical pc laptop case in years. Dell almost has this laptop with the studio 14z, but it has no optical drive and it is still 1.25" towards the back of the machine. Also, a pc company needs to come along that offers really affordable warranties or have a two year one standard. On most sites I look at, a 2 year warranty can cost 1/3 the cost of the whole machine. A $700 laptop can easily become a $950 laptop with an extra year of warranty on it.


    You can buy it from Apple and load Windows on it.
  • 3 Hide
    DjEaZy , July 8, 2009 8:08 PM
    "he believes that fewer players in the PC making market would lead to greater profits" it's like: "If this were a dictatorship, it'd be a heck of a lot easier, just so long as I'm the dictator."
  • 1 Hide
    Upendra09 , July 8, 2009 8:29 PM
    of course there are too many pc companies, they are so damn easy to build. And so much more profitable than other industries
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