Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: T L Comiskey who wrote (103347)	2/20/1999 2:06:00 PM
From: Chuzzlewit	Respond to of 176387

Interesting .... could be. TTFN, CTC

To: T L Comiskey who wrote (103347)	2/20/1999 2:18:00 PM
From: Mohan Marette	Respond to of 176387

Speaking of industry consolidation, another one bites the dust.Acer quits. Tim: I am sure you have heard of what happened to NEC,and even Toshiba and now this Acer thing.What is the implication of all this shake out in the industry for Dell,well I think the clue is in -High overhead guys vs the Low overhead guys-and I am assuming you know who got the upper hand on this cost and high overhead business . And another thing, less competition also could bring about stability in prices. There will be more to come...stay tuned, this thing ain't over by a long shot. ========================= Acer America to Exit Retail Mark Harrington San Jose, Calif. 3:54 PM EDT, Thurs., Feb. 18, 1999 Months after reshifting its consumer focus to first-time PC buyers, Acer America has decided to call it quits in the retail market, industry sources said. Acer, a nine-year retail market veteran, began to tell its retail partners this week it will phase out its Aspire line in order to focus on the small-business/commercial market. The plan affects only its PC division, not its OEM and peripherals divisions. Acer will continue to make PCs for IBM's consumer products division. Shipments of Acer-branded PCs to retailers, including such large accounts as Sears, Wal-Mart and Best Buy, are expected to begin winding down in coming weeks. Reasons cited for Acer's shift in strategy include the influx of low-end PCs in the marketplace and the indication that pricing is moving toward the cell-phone model, in which hardware is priced cheaply and profits are made on services. In addition, Acer has established a profitable business in the small-business market and is putting its money where its strengths lie. Acer executives had not returned CRW's phone calls at press time. Acer late last year introduced a line of home PCs with features geared to first-time buyers. Extensive tutorials, easy Internet hookup and a unique PC diagnostics tool called Time Machine were aimed at luring legions of new computer buyers toward the brand. Rival PC vendors said rock-bottom pricing by established top-tier players and new low-end players such as Emachines made the going difficult for Acer, which attempted to sell its new systems starting at $899. Competitors in the low end priced their PCs as low as $399. "Every time the cost of PCs has come down substantially, there have been those whose model would not allow them to come down with it," said an executive at one PC manufacturer. "Acer is a pretty high-overhead operation." Others said Acer's success in making PCs for other companies made it less dependent on having its own retail brand. "Acer has been in and out of retail for a while," said Stephen Dukker, CEO of Emachines. "I think the company has always had an OEM mentality." Noting that Emachines is working overtime to fill demand, he added, "the good news is not the expanded shelf space but that there is one fewer competitor to worry about at my back." "Another one bites the dust," said one high-level clone-PC executive. "It's a matter of how much punishment you want to take."