Acer cutting netbook orders on low demand

Acer is reportedly cutting back on netbook orders from its ODM (original design manufacturer) partners due to weak demand and a focus on the higher-margin CULV ultra-thin notebook segment.

According to Digitimes, weak demand in Europe has left a high inventory of Acer netbooks in local retail channels. Cutbacks for some netbook models will be reduced by over 50 percent with the reductions starting in June.

This news comes at the same time that Taiwan netbook vendors, such as Acer, are lowering their CULV notebook shipments due to a short supply of key components. These shortages have led to the total cost of CULV ultra-thin notebooks to increase by 10 percent higher than expected.