Weakening PC demand sees Acer climb past Dell as number two

Acer has announced consolidated Q3 revenues of US $5.34 billion – giving it an 11.3 percent sequential boost and hitting growth targets of between 10-15 percent. Crucially it has nipped past Dell to become the world’s second largest PC manufacturer, behind Hewlett Packard

Operating income for the quarter was $168.5 million which is a quarterly high, marking 11 percent year-on-year growth, reports DigiTimes. Profit after tax was $136.9 million.

However, reports from IDC indicate global PC demand is slack in traditional terms and this is why Acer managed to climb past Dell – with popular netbooks like the Aspire One.

But netbook demand is shrinking too and the Wall Street Journal suggests if Acer is going to keep itself in the firmly in the black it will need a new “ace in the hole”. Netbook sales are expected to fall roughly two percent this year and it’s hard to call whether or not Acer will manage the next big thing, that is, tablets with the same finesse. With strong competition from RIM, Samsung and Apple in particular the WSJ doesn’t seem to think so. 

Meanwhile, also in Taiwan, the second largest memory chipmaker in the region, Nanya, is experiencing more losses. Its third quarter results saw losses reach US$73.39 million, about double the previous quarter.

Nanya’s average selling price dropped 15 percent from the previous quarter and gross margin fell from 10 percent to six percent. Analysts are putting this down to shrinking global PC demand particularly from Dell, which is Nanya’s biggest client, reports the Taipei Times