Acer: Has Microsoft bitten off more than it can chew?

Acer: Has Microsoft bitten off more than it can chew?

Summary: Acer has remarked that Microsoft needs to learn that the "hardware meal" is tough to eat.

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TOPICS: Microsoft, Hardware
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Acer's Greater China president Lin Xianlang has said Microsoft needs to learn that hardware development should be left to professional vendors.

In a recent interview with Tencent Technology, Lin used the example that "hard rice" is not easy to eat -- in relation to Microsoft's attempt to create a tablet to compete against the firm's own original equipment manufacturers (OEM) and vendors.

Lin did mention that Windows 8 will change the competitive dynamics of the PC market, and will allow hardware maker Acer's prospects to rise next year. However, Windows 8 is unlikely to affect the firm's short-term earnings.

The comment about "hard rice" was meant to represent the differences between the software and hardware markets. Acer has severely opposed Microsoft's intentions to compete against its own vendors, but the high price and delivery issues of the Surface tablet may prove to be a dose of reality. Lin said that the hard lesson has to be learnt, or the production of hardware should be left to "professional vendors."

Acer has been one of the most vocal firms expressing their discontent at Microsoft's attempt to enter the hardware market, and Lin's comments reflect those of Acer CEO JT Wang who said that Microsoft should "think twice" about entering the hardware market, as it could have a negative impact on the ecosystem:

"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."

A major OEM partner, Acer is reported to be holding off on its own brand of Windows RT tablets until Q2 2013. Considering the rather vocal opposition to Microsoft's current research and hardware exploits, its no wonder.

Lin also stated that Acer has no plans to withdraw from the smartphone market, and handset shipments are expected to reach several million next year. The firm is not planning a huge research push in the smartphone sector due to high costs, and the hardware maker will be moving "cautiously".

Acer reported marginal net profit in Q2 despite weak PC demand and strong competition from rivals including Apple and Lenovo.

Topics: Microsoft, Hardware

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9 comments
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  • Funny..

    I don't recall anyone lined up to buy Iconia tablets..
    charlesdjones1
    • And not so funny I will be buying 4 new W8 devices and none will be Acers

      That's my hard rice for acer. Now stop crying, straighten your dress, and end your little tea party you little sissies.
      Johnny Vegas
  • I think acer just want their name in the press

    As they will be irrelivent soon.. They have sub standard products for sub standard prices!
    danjames2012
  • Nice atom tablet

    Acer is coming out with a dual core atom based tablet with full windows 8. Price, size, battery time and weight seem to be as good as Surface RT. You can also buy a keyboard containing extra ports and battery to that tablet.

    Acer's 10.1" Iconia W510 Windows 8 table. The tablet is 0.35" thick, weighs 1.32 pounds, and starts at $499.99.
    Oden79
    • may end up being $550

      I have been checking retailers and Acer's website and have not seen it much. However, what I have seen it seems to have a $550 price point for the 32 GB one.
      skyledavisbooks
  • Acer

    needs to learn to shut up, their brand was 'eh' before, and now with their series of comments against Microsoft, I would never buy from them... they are just whinny brat's
    x21x
  • Bold Statement Acer

    So you are saying that Microsoft cannot design and assemble hardware from parts made from other companies like every other OEM does. Sounds like Acer is a bit threatened.

    Also it should be noted that aside from the Acer branded Monitors their desktops and laptops are a bunch of cheap crap and they got that way when they bought Gateway and eMachine.
    bobiroc
  • Acer: Has Microsoft bitten off more than it can chew?

    Acer needs to take their own advice and make better hardware. Microsoft is showing them how.
    Loverock Davidson-
  • Can't compete in the marketplace...

    Can't compete in the marketplace...

    compete in the media!
    compete in the courthouse!
    compete in ANYWHERE BUT THE MARKETPLACE
    beau parisi