ETNews of Korea claims that Acer is tired of the paper-thin margins inherent in netbook sales, and is revamping production plans to emphasize smartbooks. So far, there has been no confirmation from Acer, and no follow-ups by other blogs on this interesting shift. However, the site references some interesting data from Display Search regarding the profitability potential of platforms based on Windows 7/Atom combinations, vs. those using ARM and either Chrome or a Linux derivative.
We’re ready to believe in a shift in production targets at Acer, though ETNews may be overstating the case when it says Acer is “getting out” of the netbook market entirely. We anticipate a much tighter race than Acer apparently believes in. At the same time, the company’s judgment seems sounder than those who claim, like Coda Research, that smartbooks will be DOA. It might just be time to start taking bets on relative growth rates.
Loring
