Acer founder Stan Shih has denied rumors that the company will no longer be producing tablets. Shih stepped forward to confirm that Acer is not planning on giving up on the tablet market despite low sales.

Rumors about Acer's withdrawal from the tablet and smartphone market to concentrate on its low-cost laptops started circulating in November. Unnamed sources from the "upstream supply chain" said that Acer, Asus and other PC vendors would phase out from the tablet sector in 2012 because of poor sales, lack of strong content and competitive price points from Amazon and Barnes&Noble.

In response to the rumors, Stan Shih said that although Acer tablet operation hasn't performed well it doesn't mean that the company is giving up the business. He also said that experiencing frustration is an unavoidable process and the company's troubles in the tablet market is just like the troubles Acer faced when it entered the notebook market.

Acer's board of directors has discussed the company's product development and is working to streamline its corporate organization which may include merging its tablet and smartphone development. A simplified smartphone and tablet operation will also increase operation efficiency, reduce conflict in product development and consolidate resources. The board has also consented to simplify operational goals by focusing on profitable products.

Shih also clarified that Acer will not downsize related personnel but will make necessary adjustments to maximize operational resources. If the new strategy works, Acer will expand its tablet PC and smartphone business operations.

Acer's products include desktop and laptop PCs, tablet computers, servers, storage devices, displays, smartphones and peripherals. Acer also owns the largest franchised computer retail chain in Taipei, Taiwan.