Report: Acer cutting Q3 notebook shipments 15 percent

After cutting its tablet forecast, Acer is also reducing its notebook shipments for the third quarter to reduce a backlog of inventory with retail partners, DigiTimes says.

Acer is reducing its notebook shipments as it works to clear an inventory backlog with retail partners.
Acer is reducing its notebook shipments as it works to clear an inventory backlog with retail partners. Acer

Just two weeks after drastically reducing its expectations for Android tablet shipments comes word that Acer is drawing down its third-quarter 2011 forecast for the number of notebooks it will ship.

DigiTimes has sources among Acer's component suppliers, which tell the outlet that Acer will reduce its notebook shipment forecast from 6.4 million to 5.4 million units.

Most of the reduced models are Netbooks, according to the report. DigiTimes got Acer founder Stan Shih to comment, and he didn't deny the report. He did say Acer is still adjusting to a structural reorganization after parting ways with its former CEO and asked for patience among investors.

Acer's got a few issues right now. The Taiwanese PC maker has a backlog of notebooks in retail channels and has to clear those out before bringing in new models. That happened because Acer was a little too aggressive about shipping products to retailers, according to IDC PC analyst Jay Chou.

"They were too optimistic about how many PCs they could sell," Chou said in an interview earlier this month . "They forced their channel partners to overcommit and they took a larger amount of inventory than they should have."

Acer was one of the first PC makers to take advantage of the appeal and low price of Netbooks. While the company was able to pump up its shipments by selling the undersized and underpowered mini notebooks to customers looking for cheap, mobile alternatives to a full-size PCs, interest in that category has largely dissipated.

The fall of the popularity of Netbooks has been even swifter than their rise, with sales declining consistently over the last few quarters. Many industry observers have pegged the drop-off with the arrival of the iPad and other touch-screen tablets.

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