Acer 'needs new business model' for mobile

PC makers disadvantaged in tablet market, says report
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DigiTimes analyst Joseph Tsai said that PC builder Acer would need a new business model in order to compete in the smartphone and tablet categories.

Tsai was critical of outgoing CEO Giafranco Lanci, pointing out that non PC and monitor business accounted for less than 5 per cent of the firm's revenue.

"Lanci has to be held responsible for the failure to expand Acer's product lines," he said.

Considering the relative strengths of the smartphone manufacturing industry versus PC builders, Tsai concluded that PC brands were disadvantaged when it comes to tablet PCs.

Out of six metrics of competitive advantage, Tsai said that manufacturing ability and control over the IT channel were the only two advantages for PC builders, while smartphone makers had better hardware and software design and better relationships with telecoms carriers.

Our of the top three PC builders, Tsai said HP was 'most qualified' to compete in the next-generation mobile device battle while highlighting Acer's lack of investment in research.

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