Acer, former CEO spar over declining fortunes

Former CEO Gianfranco Lanci quit in March over differences with the Acer board

Acer on Wednesday charged its former chief executive officer, Gianfranco Lanci, with performance issues, after he had criticized the company's resistance to globalization in interviews with the media.

Lanci, who resigned from Acer on March 31, said this week from his native Italy that he was on the brink of making changes that would have led to the company's "de-Taiwanization", according to media reports.

He said that the board was resisting globalization by not hiring engineers outside Taiwan, among other things.

The public sparring comes as Acer reported a 21.2 percent year-on-year decline in first-quarter revenue.

The public sparring between Acer and Lanci is unlikely to hurt the company, which is poised to move ahead with the development of tablet PCs to overcome the revenue decline, analysts said.

"This particular spat won't have any effect on Acer's business, because Lanci is already gone," said Helen Chiang, research manager with IDC in Taipei. "Consumers will have no way of evaluating it."

Acer continues to pursue globalization, a company spokesman said. The company is not promoting a Taiwan focus or 'Taiwanization', and did not favor hiring only local staff, he added.

The Taiwanese company said that during Lanci's tenure there was high inventory, poor sales of mobile devices and a lack of vision.

Lanci could not be reached for comment.

Acer's board probably recognized Lanci's marketing savvy and trust among investors but wanted to develop tablets and feared he was the wrong person, analysts said.

Lanci and the board faced a "big split" as the former CEO focused on selling laptops while other senior leaders had plans for tablets and touchscreen phones, said Tseng Hsiao-chen, analyst with Taishin Securities Investment Trust in Taipei.

"Gianfranco had his way of controlling things, and the new leader wants to build his own management style," Tseng said. "That takes a while to break in."

"The future of Acer is in PCs, and it's safe for the next three years, but this is the age of convergence, and it's changing the playing field," said John Brebeck, head of Taiwan research for Yuanta Investment Consulting. "What Acer needs to prove, is that it can make it in smartphones or tablets."

Acer's spokesman confirmed that tablets are a priority for the company.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesbusiness issuesacerPhoneshardware systemspersonnelconsumer electronicstablet PCslaptopsJ.T. WangGianfranco Lanci

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ralph Jennings

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

Bitdefender 2019

Bitdefender’s best-in-class security solutions have been awarded Product of the Year. Get cybersecurity that 500 MILLION users already have and trust!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?