Acer Chief: There Are Too Many PC Companies

From Tom's Hardware: Acer's chief executive Gianfranco Lanci expressed in a recent interview that he feels that there is too much competition in the PC market. More specifically, he believes that fewer players in the PC making market would lead to greater profits.

While that may sound like Business 101, Lanci took his insight further by saying that companies such as Acer need to look at buying out other computer companies in order to become more profitable.

"This can be a very good industry in terms of making profits if you think about there being four or five players instead of seven or eight as you see today," Mr. Lanci said to the New York Times. "There is not enough profit in the chain to maintain all these players today."

Lanci's logic is that though acquisitions, companies will become larger and thus be able to negotiate for better prices for computer components from suppliers and builders Quanta and Compal.

Acer's already played the buying game with its acquisitions of eMachines, Gateway and Packard Bell, which may have played a part in the company's rise now to rival Dell for the number two spot worldwide, behind Hewlett-Packard.

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