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 aries.poon@wsj.com
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