Taiwanese co. Acer is following in the footsteps of neighbouring Korean’s Samsung in ceasing production of Netbooks – but Acer’s motivation is in an attempt to save the company’s struggling profits.
Acer is infamously struggling on a financial level which is the reason for their axing of the Aspire Netbook range to focus on higher-end laptops. This unlike Samsung which is still enjoying great success with its mobile range having this year alone released the Galaxy II to much-acclaim (and profit) and also recently unveiling the produce of its partnering with Google, the Galaxy Nexus. Knocks in laptop earnings wouldn’t really phase Samsung.
Samsung just last week sent a message to investors, which was intercepted and leaked online. The message read of Samsung’s ‘new 2012 strategy’ and told how the Netbook was set to be axed, due to dwindling interest by the tech-buying market (however this was not the given reasoning) and the company will become more focused on its more popular 11.6” and 12” Ultrabook range of laptops.
Acer CEO JT Wang has now also spoken out but not in an admission of his company’s desperate move to regain losses in 2012 by ditching the Netbook. Wang says “We will shift our strategy to improving profitability from pursuing market share blindly with cheap and unprofitable products.”
“Ultrabooks will become our key growth driver next year as customers want a lighter, thinner notebook with longer battery life. Selling more Ultrabooks will also help improve our profit margins as they command higher prices.”
Taking a page out of Samsung’s ‘book is a smart move, but where Sammy’s doing it because they could take or leave it – Acer are depending on this move for survival.
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