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Acer Chief: There Are Too Many PC Companies

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."

Marcus Yam
Marcus Yam served as Tom's Hardware News Director during 2008-2014. He entered tech media in the late 90s and fondly remembers the days when an overclocked Celeron 300A and Voodoo2 SLI comprised a gaming rig with the ultimate street cred.
  • Parrdacc
    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.
    Reply
  • sublifer
    maybe HP is gonna buy acer
    "I think we need to be part of this consolidation in some way."
    Reply
  • cadder
    Acer could improve their own position by changing their business practices and trying to support their customers better.
    Reply
  • mavroxur
    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!
    Reply
  • ColMirage
    Self built > Prebuilt. Unless you're really short on time or there's some sort of blazing hot deal.
    Reply
  • NuclearShadow
    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.
    Reply
  • Parrdacc
    mavroxurANTI-COMPETETIVE! Get 'em EU!
    LOL! Well that answers my question about who the EU will go after once they are done with M$.
    Reply
  • LUCKYSTARWZ
    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.
    Reply
  • hillarymakesmecry
    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.
    Reply
  • war2k9
    Acer make a mac.
    Reply