Asus and Acer to merge into a single company?

Asus and Acer to merge into a single company?

The shrinking margins inevitably lead to industry consolidation. Acer founder Stan Shih said that the Wintel model doesn’t work anymore with Microsoft and Intel keeping all the profits. The Taiwanese company can either experiment with other platforms (like it already does) or try to further enhance its supply chain; or look to merge with some other company and benefit from the economies of scale. And guess which company they could merge with – its archrival Asus, which too is based in Taiwan.

At the moment, the two CEOs just have “an open mind” about this. Acer’s Stan Shih said that any deal must be thoroughly analyzed in a way that gives maximum benefits to shareholders, employees, and even society as a whole. On the other hand, Asus is known for its organic growth throughout the years, but with the changing times, anything could happen. At the moment, Asus is making both Windows and Android-based products though just like Acer, it has hard time convincing operators to sell its gear.

So this deal is still in the “early rumors” phase, but honestly – we can see it happening. Not only do Acer and Asus have to worry about competitors from the U.S. (think: Apple, HP, Dell) but also from China, most notably Lenovo which keeps growing like it’s nobody’s business. We’ll be on the lookout for any related news and get back to you as soon as we have something worth talking about to add. Stay tuned…

[Via: Unwired View]

  • PeterSteinbeck

    This sounds reasonable in today’s market.

  • ThePlumberBob

    I blame the nastyness that is Windows 8.

  • HisDivineOrder

    I’m not sure I see the appeal for Asus. Acer isn’t eating into their margins and they can only produce so many devices. This kinda reminds me of the HP-Compaq merger in its stupidity. They’re mirror images of one another. So Asus gets nothing from Acer they don’t already have. Hell, Acer’s name (or Gateway’s name) is worse than Asus’s in branding terms.

    Asus would be better served buying HTC to get into mobility with a brand that people have heard of than buying a company that is their mirror image (except they’re failing harder).

    Now if they basically folded into Asus cheap, I could see it maybe if Asus saw it as a chance to get rid of a competitor, but it couldn’t be anything expensive to Asus or at all troublesome. And most of Acer would just go away completely.

    The thing that really bugs me about this is if Asus saw a need for a cheap competitor to merge with them, why not buy back AsRock that was spun off from their value line anyway?

  • zeitgeist

    asus + acer = asser? they both suck and gain nothing from eachother, so perhaps they’ll end up collapsing into a singularity of suckage. :/

  • billie buttholez

    mmmmm hey stud

    • nisar

      may acer mobile screen damige .may country pakistan this mobaile acesories not avelibale .i am campused ans me . thanks

      • Prez aITeSp

        hahahhahaa nice one

  • DJR96

    Acesus? ;-)

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