Acer cuts 1998 profit forecast by 36 per cent

Acer cuts 1998 profit forecast by 36 per cent

Acer last week lowered its full-year 1998 profit forecast by 36 per cent, citing lower than expected sales of Acer-branded PCs and memory chip losses as the main reasons for the dim prediction.

The core PC making parent company of the Acer Group said that it now expects 1998 after-tax profits to reach $US100.6 million, down from the previously forecasted $US158 million.

The new forecast suggests that Acer expects to ship more units for less profits, as the industry trend toward ever lower PC prices continues to squeeze margins at PC vendors, analysts said.

Acer bills itself as the world's third-largest PC manufacturer, but more than half of its PC output is sold under the brand names of its customers, which include IBM, rather than under the Acer brand.

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