Acer First-Quarter Net Profit Jumps but Revenue Slides

    By Aries Poon 
 

TAIPEI--Taiwanese personal-computer maker Acer Inc. (2353.TW) posted a marked growth in first-quarter net profit on cost cuts, though revenue fell as the global PC market shrank and the company sold more lower-priced devices.

Acer, the world's fourth-largest PC maker by shipments, said Thursday its net profit for the first quarter was 173 million New Taiwan dollars (US$5.7 million), compared with NT$1 million a year ago.

Revenue, however, fell to NT$67.95 billion in the January to March period from NT$76.72 billion a year earlier.

Worldwide PC shipments dropped 2% last year as consumers continue to turn to smartphones and tablets, according to market-research firm International Data Corp. Global shipments are likely to fall by another 5% this year to 293 million units, the IDC said, as Microsoft Corp. (MSFT) scales back subsidies to PC makers this year. A stronger U.S. dollar and an accelerating migration to mobile devices from PCs in emerging markets would further hit global PC demand, the IDC said.

Acer has managed to keep its head above water this year, largely due to aggressive cost-cutting pushed by new Chief Executive Jason Chen. The sale of more low-cost Chromebooks and other laptops in emerging markets and Europe has also helped Acer in a shrinking global PC market, analysts say.

Write to Aries Poon at [e-mail]

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