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Acer CEO says Japanese PC makers are weak


Industry in need of consolidation

Acer CEO
Gianfranco Lanci, the man behind the company's renaissance over the past couple of years, says the industry needs consolidation, and that some companies are bound to be squeezed out of the market.

In a recent interview, Lanci said the top three PC makers, HP, Dell and Acer, need to take out Toshiba and Sony. He claims Japanese PC makers are "at the weakest today". The idea is that the big three could end up with a higher market share, allowing them to get better prices from the likes of Quanta and Compal.

This would obviously enable the top PC makers to increase margins and drop retail prices, making their products even more competitive and squeezing the little guys out.

Lanci also said that Asustek and Lenovo need to take a long hard look at their aspirations of functioning as independent companies. He says Lenovo is heading in the wrong direction, and that it has been struggling since it acquired IBM's PC business.

More here.
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