Acer CEO steps down due to disappointing Q3 PC sales

By on November 5, 2013, 10:00 AM

In light of recent disappointing financial results, Acer chairman and CEO J.T Wang has announced that he will be stepping down starting in the new year.

Wang's resignation will become effective as of January 1st, but reports say the soon-to-be former CEO will maintain his position on the board to finalize previous engagements until Q2 2014. Current Acer president Jim Wong is reported to be replacing Wang as CEO once he finally departs the company next year.

"Acer encountered many complicated and harsh challenges in the past few years. With the consecutive poor financial results, it is time for me to hand over the responsibility to a new leadership team to path the way for a new era," Wang said in a statement regarding his resignation.

J.T Wang, as we previously mentioned, is stepping down due to poor numbers, which dropped nearly 35% in Q3. The company experienced much wider losses than anticipated at $446 million USD compared to the $109 million analysts expected. "Q3's operating loss was mainly due to the gross margin impact of gearing up for the Windows 8.1 sell-in and the related management of inventory," the company said in a statement pertaining to the disappointing third quarter losses. Acer is expected to cut around 7% of its global staff, which would save around $100 million in yearly operating costs as a result.

Another interesting point here is that Acer, the fourth largest PC maker on the planet, experienced significant losses in a quarter when the three competitors above them in the list - Lenovo, Dell and HP - actually reported some form of small growth during the same time period.

(Image via Reuters/Pichi Chuang)




User Comments: 11

Got something to say? Post a comment
Arris Arris said:

Even if PC sales are disappointing surely Transformer devices, tablets and other devices must be doing ok for them?

tipstir tipstir, TS Ambassador, said:

CEO of this company not thinking right. Step down if you have too since you don't want to take the blame for how things are going. ACER does make good products I use them here with HP. But still they keep changing everything to suit the market or really themselves. Tablet market is tough one Google/Android has a huge presents, the rest of them just playing catch-up with poor mismanagement.

cliffordcooley cliffordcooley, TechSpot Paladin, said:

Step down if you have too since you don't want to take the blame for how things are going.
Stepping down is taking the blame. It is making the ultimate statement "I'm not the one". Or is he graciously accepting a decision the board made for him?

Guest said:

Transformer = Asus

1 person liked this | Wendig0 Wendig0, TechSpot Paladin, said:

Even if PC sales are disappointing surely Transformer devices, tablets and other devices must be doing ok for them?

+1 Guest.

Asus makes the Transformer, not Acer.

TheDreams TheDreams said:

It seems that every time sales are not up to par, that the CEO retires. I find that interesting seeming as how they would give up that salary and fame just because of their conscious on how the company did that year. Probably a, cough**board decision** cough, different factor playing the hand.

p51d007 said:

They announce in September, the Acer Liquid S2 6" smartphone, then, not one single word

out of them about it.

MilwaukeeMike said:

It seems that every time sales are not up to par, that the CEO retires. I find that interesting seeming as how they would give up that salary and fame just because of their conscious on how the company did that year. Probably a, cough**board decision** cough, different factor playing the hand.

Well, when a sports team does poorly they usually fire the coach. Even if the owner's been making bad trades and draft picks for years. The CEO is the one to take the blame because they're more responsible for the 'direction' of the company. The thing is, one of the most important factors that determines how well a company does is the industry's performance. Meaning... the CEO of a PC company in 2013 is going to have problems no matter what he does.

ikesmasher said:

I like acer products....

But they could, you know, advertise a little bit.

But I find they make reliable cheap stuff. Never gotten high end products from them.

1 person liked this | Arris Arris said:

+1 Guest.

Asus makes the Transformer, not Acer.

Oooopsy

drjekel_mrhyde drjekel_mrhyde said:

This is the only OEM that makes Toshiba crap look good

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