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Acer’s profit grows 173 times
Computer maker Acer reports tangible first-quarter profit growth. However, the Taiwanese company’s revenue declined due to the fall of the PC market and the vendor’s emphasis on low-cost devices.
In January-March 2021, Acer’s net profit amounted to NT $ 173 million (about $ 5.7 million) against NT $ 1 million a year earlier. Operating profit for the same period increased by 139%, reaching NT $ 304 million ($ 10 million).
“These results reflect the effectiveness of a strategy to deliver a variety of products to meet market requirements, as well as control operating costs and manage inventory,” Focus Taiwan quoted Acer as saying.
Meanwhile, Acer’s sales fell 11.4% year-on-year to NT $ 67.95 billion ($ 2.16 billion) in the starting three months of 2021. The drop in revenue is due to the fact that the company is increasingly focusing on low-cost solutions such as Chromebooks. However, the main negative factor is the overall decline in demand for computers.
According to IDC analysts, in the first quarter of 2021, manufacturers worldwide shipped 68.5 million desktops and laptops, down 6.7% from a year earlier. Market volume fell below 69 million units for the first time since 2021 due to the high dollar and the popularity of mobile devices.
Acer remained unprofitable from 2021 to 2021. Last year, the company was able to return to profit due to a large-scale reorganization, within which the management team was changed, the staff was reduced and business accents were set in a new way.
Acer predicts its own revenue growth in the next two quarters. Analysts at Yuanta Securities Investment Consulting, citing data in the supply chain, say the Taiwanese company may increase its computer output by 8-9% qoq in the second quarter, below the projected 10% growth for the entire market.