Acer Warns that Android's Success Should be Shared
Stan Shih, the founder of Acer, made a remark towards Google chairman Eric Schmidt regarding the sharing of Android's success throughout the "value chain" of its suppliers.
The remark made by Acer's founder was mentioned after complaining that both Microsoft and Intel were able to gather "too much profit" due to the success of Windows in the industry. Contractual arrangements regarding Windows hardware showed that operating margins on commodity PC hardware was less than 5% while Microsoft and Intel were reaping the profits on the software and processor.
In response to this statement made by Shih, Eric Schmidt, the chairman for Google insisted that "resources will be shared" among the members of the Android ecosystem". This means that everyone involved in the Android smartphone technology would be able to have their share of its success. Though that is the case, many doubts were raised because of the recent business decision that Google made and this was its acquisition of Motorola. Some companies are not confident that these resources would indeed be shared to them. Schmidt declined to comment about the issue of Google launching their own-branded handsets through the company's acquisition of Motorola. Schmidt is currently on tour in the Far East where he is promoting the advantages of the Chrome OS for PC players.
Though Acer is not a major player in the Android smartphone market, this warning is a reflection of the sentiments from Android system builders who have not yet benefitted from Google's effort outside the smartphone business. One of these efforts by Google is the building of the "Chromebooks" with the use of Google's Chrome OS. This effort was not considered as successful because the demand for OS-based devices was lower than expected. Digitimes further explained this situation stating that "PC players are taking a passive attitude toward opening projects. In June 2011, Acer and Samsung launched their Chromebooks ahead of other PC brand vendors, but by the end of July, Acer had reportedly only sold 5,000 units and Samsung was said to have had even lower sales than Acer".