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Acer CEO from Taiwan Leaves Position

The company of Acer said that the chief executive of Taiwan’s leading personal computer maker Acer Inc. has resigned, quoting conflicting views over the future of the firm which faces decreasing order for PCs.

The exit of Gianfranco Lanci, the chief executive officer and president and also, an Italian, comes after Acer, which is attempting to branch into the tablet market, said its first-quarter income would go down short of anticipations.

Acer said in a statement, “On the company’s future development, Lanci held different views from a majority of the board members, and could not reach a consensus following several months of dialogue.  They placed different levels of importance on scale, growth, customer value creation, brand position enhancement, and on resource allocation and methods of implementation,” it said, last Thursday.  The board accepted the resignation.

The company said J.T. Wang, Acer chairman, who will get on role in the interim of Lanci, aspires to turn into a leading player in the new mobile gadget market, counting smartphones and tablets.

He said, “We have to change our business strategy as the PC industry landscape has changed a lot with the rise of tablets and multiple PC operating systems.”

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“We may need to adjust our full-year guidance (on earnings forecasts) after finalizing our new business structure by the end of May.”

Several analysts illustrated departure of Lanci as “sudden and shocking,” reflecting tough challenges the second largest PC maker faces of the world from the time when the launch of Apple’s popular tablet computer iPad previous year.

Read the headline of comments in the Taipei-based China Times, “Lanci — the CEO knock off stage by Apple.”   “Acer was heading to the world’s number one spot in the notebook computer market but it did not anticipate that Apple will sweep the market with tablets.”

Acer, who started shipping tablets in March, plans to roll out 5-7 million of the gadgets this year.

The company has said its PC income fell concerning 10 percent as of March 25 from the fourth quarter of last year, because of weaker demand in Western Europe and the United States.

Analysts say, shares of Acer on Friday cut down 4.83 percent to Tw$57.1 ($1.9), in spite of the plan of the company to use up on Tw$3-5.4 billion to purchase back two percent of its outstanding shares from Friday to May 31.

Alex Huang, an analyst at Mega International Investment Services said, “The replacement of Lanci signals that the company is entering an adjustment phase that won’t be completed in just one or two quarters.”

He said, “Foreign and institutional investors will adjust their portfolio as Acer’s operational forecast becomes more negative after the news.”

photo credit: wirespot.net