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Chromebook sales not enough to prop Acer: Swiss bank
Central News Agency
2014-07-28 04:53 PM
Taipei, July 28 (CNA) The growth in Acer Inc.'s Chromebook Web-connected laptops is not enough to offset a greater decline in its Windows PCs sales, according to Swiss bank Credit Suisse Group AG. The Taiwanese computer maker's global Chromebook shipments totaled 1.8 million units in the second quarter of this year, beating Samsung Electronics Co. for the first time with a top market share of 30 percent, a July 21 report by Taiwanese research firm WitsView showed. While Chromebook shipments in the first half of 2014 helped decelerate Acer PC's decline, the drop in its Windows PC shipments was greater than the increase in its Chromebook sales, said Thompson Wu, a Credit Suisse analyst in Taipei. He said Acer's Chromebook shipments totaled about 925,000 units in the first half of 2014, increasing by 753,000 units from the same period of 2013. The company's Windows-based PC shipments, however, declined by 1.9 million units over the same period, the analyst wrote in a research note last week. Acer currently offers three Chromebook models at an average selling price (ASP) of US$252, which is 52 percent lower than the price of its Windows-based notebook ASP, Wu said. That means Acer needs to sell at least 2.1 times more Chromebook units to level with its Windows-based notebook sales, he added. Furthermore, Wu said, Credit Suisse's analysis of Acer's Chromebook product portfolio and bill of materials suggests that Acer needs to sell three to four times more Chromebook units to generate a gross profit similar to that from its Windows notebooks. Taking these factors into account, Wu maintained his "underperform" rating on Acer shares and a price target of NT$11 (US$0.37). Acer shares edged down 1.79 percent at NT$24.75 (US$0.83) Monday in Taipei. (By Jeffrey Wu)
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