The Third Biggest PC Maker Warns Sales Are Tanking

Acer Iconia
Acer Iconia, one of the company’s Android-based tablets.

Acer, the number-three PC maker in the world, told investors this morning that second-quarter sales will be down 10% from last year. That’s more bad news for PC suppliers like Microsoft and Intel.Acer previously expected flat growth during the quarter.

Last month, Acer warned that it had a bad first quarter as well, with sales down 10% from the previous year. The company has been hammered as netbook sales dried up, replaced in part by Apple’s iPad. It reports first quarter earnings on April 28.

President Gianfranco Lanci resigned in the wake of the bad news last quarter, and today Acer said he would be replaced by Jim Wong, who previously led IT operations for the company.

Acer will also form a new division focused exclusively on tablets and smartphones. The consolidation makes sense, as Acer is increasing its bet on Android for both types of devices.

Previously, tablets were lumped in with notebooks, while smartphones were separate.

Last week, research firm IDC published first-quarter results for the PC market showing sales down more than 1% across the board. Acer was the worst performer in the top five.