Acer warns Google
Acer’s founder, Stan Shih, has given a sharp warning to Google, saying that the benefits from Android’s success should be shared throughout “value chain” of its suppliers. Shih complained that both, Microsoft and Intel have gathered too much of the profit from the success of Windows.
Shih’s remarks indicate that some enterprises value too much their own interest and ignore the profitability of their suppliers, partners and clients. Companies making Android systems are afraid of being cornered in the way businesses making Windows hardware have been, where operating margins on hardware can be less than 5% whilst Microsoft and Intel enjoy monopoly profits on software and processor.
Google’s chairman Eric Schmidt insisted that the resources will be shared among the members of Android “ecosystem”. However, Schmidt declined to say whether Google would launch own-branded handsets, using its acquisition of Motorola.
There is also a question mark over the future of Google’s Chromebooks due to lower that expected demand for Chrome-OS based devices. 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.
Poor sales of Chromebooks might have been caused by the slow sales of computers generally or by it limited functionality- Chromebooks require connection to the internet to function effectively.
Stan Shih’s comment is reflecting the sentiments of a number of Android systems builders who have so far failed to benefit from Google’s efforts outside the smartphone business.

