Alexa
  • Directory of Taiwan

Acer CEO gives bearish PC forecast on inventory, currency risks

Acer CEO gives bearish PC forecast on inventory, currency risks

Taipei, Aug. 26 (CNA) The chief executive of Taiwanese computer maker Acer Inc. (??) said Wednesday that the outlook for the global personal computer industry was bearish amid high inventory levels and violent currency swings. Jason Chen (???) told the press on the sidelines of an Acer cloud developer conference that the launch of the Windows 10 operating system in July had eased the delay in consumer buying in several markets. But Chen said other "headwinds," including high inventory levels across the PC industry and the lingering currency risk, had prompted him to change his forecast for PCs to a more bearish outlook than earlier in the year. "We would need to select the right markets in order to maintain our bottom line," Chen said. Acer also plans to optimize its product lines and work with distributors to address its high inventory, which was valued at more than NT$30 billion (US$924 million) in the April-June quarter, he said. Acer's current high inventory is a result of an increasing mix of components, but the company has been cautiously controlling its inventory of complete products, which are not expected to be written off in the future, Chen. He declined to forecast Acer's third-quarter foreign exchange data, saying only that the company would follow its strategy step by step to deal with the challenges in the shrinking PC industry in the second half of the year. Chen also said Acer has no plans to buy back shares although its stock fell 4.8 percent to a new low of NT$9.71 on Monday. This was due in part to a record plunge of 583.5 points, or nearly 7.5 percent, on the main index of the Taiwan Stock Exchange. The Taiwanese PC vendor reported a slim net income of NT$2 million (US$79,000) for the second quarter of 2015, and booked foreign exchange losses of NT$1.256 billion. In the first six months of 2015, Acer's consolidated revenue fell 18.9 percent year-on-year to NT$128.15 billion, reflecting delayed PC buying as customers waited for Windows 10. The touch-friendly OS was released on July 29. Acer shares ended up 4.69 percent at NT$11.15 Wednesday in Taipei, outpacing a 0.52 percent gain on the broader market. (By Jeffrey Wu)


Updated : 2021-09-24 10:08 GMT+08:00