Acer CEO's 'think twice' Surface warning to Microsoft laughable
Summary: Acer warns Microsoft that the Surface will disrupt the PC ecosystem. Perhaps the ecosystem needs some disruption.
Acer CEO JT Wang said that Microsoft needs to think twice about launching its Surface tablet because it'll rattle the ecosystem and partners could become rivals.
In an interview in the Financial Times, Wang said:
We have said [to Microsoft] think it over. Think twice. It will create a huge negative impact for the ecosystem and other brands may take a negative reaction. It is not something you are good at so please think twice.
The comments made me chuckle on a few counts. To wit:
- First, Microsoft wouldn't have cooked up the Surface if partners were pushing the design envelope. Let's face it, the PC industry's idea of design is to see what Apple cooks up and then copy it.
- Second, Acer is largely stuck with Microsoft at least for laptops and PCs. In other words, Acer can whine, but has little leverage for anything else.
- And third, Microsoft's Surface tablet isn't likely to be a threat to the PC ecosystem. Yes, Microsoft has acknowledged the risk of competing with OEMs, but it's a move the company has to make.
In addition, Wang needs Windows 8 to sell ultrabooks and help Acer grow again. Acer's first quarter earnings presentation highlighted how important Windows 8 will be. All Acer has to do is deliver compelling hardware designs---Surface or not.
Related: Microsoft's Surface strategy may force us to find another platform, says Acer | Bott: Microsoft's radical new business plan is hidden in plain sight | Microsoft Surface will be a real iPad rival in the enterprise, say CIOs | The competitive 'problem' in the tablet market isn't the OEM business model | Microsoft and OEMs: New game, new rules | Debate: Did Microsoft throw users under the bus?
Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.
Talkback
But the issue makes it obvious
And it makes it obvious that MS could crush them on a whim.
The only available alternative that restores their profit margins would Linux distributions and/or Android.
And a future possibility with ReactOS.
@jesspollard
Every support call that Acer answers costs them money and can eliminate the meager profit they receive thanks to their decision to race all the other OEM's to the bottom.
The history of net books should be a stark reminder of what could happen if they abandon Windows for Linux.
no - netbooks was a history of MS underbidding
And then there is the issue of raising prices on OEM licenses for PCs.
No thats not what happened. That fact was that users preferred a 7 year old
Actually Crapware Makes XP "Cheaper"
Also, Microsoft was in a position to put pressure on OEMs to use Windows XP, so that helped too.
Customers, of course, were happy to take Windows netbooks because they were already familiar with XP (and they could run the software they already had). I wouldn't be surprised if, were Microsoft to start selling XP again with five years of support, it would sell pretty well now just for that reason.
OS X Anyone?
@jessepollard
Acer CEO's 'think twice' Surface warning to Microsoft laughable
Let's not face it since this statement is wrong.
Going back to the issue here, Acer is in no position to warn Microsoft. They have to stay friends/partners with Microsoft or risk losing their entire business. They have no one else to partner with. Linux is out of the question on PCs. Too much malware with android. Apple builds their own systems. The last time I used an Acer was over 10 years ago and it was a very cheaply made notebook. They either need to step up their game and build some high quality well designed products or risk going out of business.
"Acer is in no position to warn Microsoft"
Ever heard "The customer is the king?"
Yes I have
funny you asked that
So you believe Microsoft's customers need to be tormented? Or what was your point?
Of course, Acer, the Microsoft customer has every right to want Microsoft, the supplier, that they are going the wrong direction.
Do you still think otherwise? Or you felt compelled to attack my post because I often do not share your "Microsoft-uber-alles" opinion?
You're being a little sensitive, danbi.
I was challenging you on your "customer is king" stance - if you think questioning an argument is somehow an attack on you personally, then you really need some emotional help. Sorry, I can't help you with that, I'm afraid.
Judging by this recent response, you seem to think Microsoft's ultimate customer is the OEM, when in fact, their ultimate customer is.. well.. the customer.. It doesn't matter if Acer thinks Linux or FreeBSD or even OS/2 is the cat's meow - if the ultimate customer doesn't want any of those things, Acer doesn't really have much flexibility, do they?
Microsoft isn't in the business of satisfying Acer, or Lenovo, or HP, or Dell, other than to provide an operating system that these companies can include with their systems that their customers want to use. It doesn't matter if Acer thinks the new Windows interface is fun or easy to use, only that the ultimate customer wants it, and it works with their hardware.
"Of course, Acer, the Microsoft customer has every right to want Microsoft, the supplier, that they are going the wrong direction."
Sure, but they did so by flailing their arms in the air and announcing to the world that they are taking their ball and going home. Acer knows that Microsoft's move is in the best interest of Microsoft and Microsoft's customers, which is why most of Acer's announcement is all about how Microsoft is screwing their OEM ecosystem, rather than doing a disservice to their customers.
OEMs role
In my book, the customer is the party that pays. If the OEMS is paying Microsoft for the "privilege" to ship Windows with their hardware kit, then in this case th customer of Microsoft is the OEM. The customer of the OEM is the end user.
It is also no surprise, that Microsoft refers end users to the OEM for any support.
So which is it? Are we observing double standards here?
P.S. Don't worry about my mental health.
@danbi
These same OEM's who are ALL shipping products running Android/Linux?
The worlds biggest OEM who announced that it was abandoning its PC business?
These same OEM's who continued to manufacture cheap, plastic, poor quality hardware and race one another to the bottom of the market whilst Apple ate their lunch for them?
The OEM's have proven one thing: they are not to be trusted to be good hardware partners and that many of them are technically and aesthetically bankrupt.
Thank goodness Microsoft has the balls to challenge the industry and reset expectations of what a PC should look like and what it can do.
Microsoft's pipe dreams
So, you believe once an OEM ships Windows, they should not touch any other OS, ever?
Wasn't this precisely, why Microsoft was convicted criminal of abusing their OEMs? Wasn't this something they agreed to not do ever again?
All your rant "proves" is the OEM system is ill devised to begin with. But, any of this didn't prevent Microsoft from extracting billions from those same OEMs. Nor did it prevent Intel.
Both Microsoft and Intel just woke up to discover, their slaves are about to run somewhere else.
Make no mistake -- all this will be very painful process for the OEMs. To some extent - for their customers too. But so happens during times of revolution.
And no, I don't blame Microsoft, that all those OEMs were so stupid, they didn't look for alternatives to Windows until now. I mean, serious alternatives: their very own UNIX OSes -- not something prepackaged like Red Had, which is no different than Windows in this case. Microsoft just abused the situation, to their own fail at the end.
I wonder, if Microsoft didn't trust their OEMs so far, where are their very own PCs?
This song, "OEMs are why we failed with the PC" is very new. It's today's tune.
Truth is, they *both* failed, because IBM decided to abandon the party and let Apple have their show.
What in the world are you even saying?
So PLEASE spare us the 12 year old argument about how Microsoft is "abusing" their OEM's. I applaud Microsoft for setting an example of how to showcase THEIR product. The only other theory I have about your defense of Acer is that perhaps you are an employee there.
Agreed
Microsoft's plan with the Surface is exactly where the company needs to go
But, Microsoft has spoken....
Even a fool, when he holdeth his peace, is counted wise: and he that shutteth his lips is esteemed a man of understanding. -- Bible, 'Proverbs' 17:28.
Modern day translation:
It is better to keep your mouth closed and let people think you are a fool than to open it and remove all doubt.-- Mark Twain (1835-1910)
No yours are!
MS is not to blame for acer profit margins. They license windows at a very