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Comment by jerryji | Hacker News Reader

So _how_ exactly did it happen?

It's such a typical distracted and convoluted main stream news that after reading the article my brain was like a messed up Rubik's Cube and I had to twist much just to summarize only two points:

* Aggressive investment in Netbook, which is supposed to be disruptive innovation. This is fine.

* Acer is free to choose low cost parts for its laptop -- this is considerably fluffier as if its competitors are doing (trying to do) the same.

Anyone else has a better idea?

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Easy. It's not just Acer, it is Asus and MSI and possibly many more to come. And its not because they're doing something exceptional. The business of PC building has changed to their advantage because of two (harshly worded) trends:

1. Computers, even laptops, become commoditized and don't require much of R&D to design and produce.

2. The majority of PC sales are consumers' who, unlike business customers, prefer cheap disposable junk, hence there isn't a single 24-bit true-color laptop available to buy these days: they're all gone. (which makes me wonder: what is the point of these high-tech digital SLRs?)

Don't bring the Apple argument: their success rests on value-add services/software that just happen to run well on in-house hardware.

P.S. Suddenly, IBM's decision to sell off PC business several years ago looks even more impressive.

IBM's decision to sell off the Thinkpad business was a good one. They must have learned it from the commidification of their other businesses like the Hard Disk business.

The margin of Acer is 2%. That is really really low. IBM margins in services must be in 20s.

Yup. IBM has an operating margin of 17% according to Yahoo.

> isn't a single 24-bit true-color laptop available to buy these days: they're all gone. (which makes me wonder: what is the point of these high-tech digital SLRs?)

It's not just laptops - find a decent display for a desktop.

According to a Pixar presentation that I saw a couple of years ago, the disappearance of decent CRTs was a big concern for them.

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