13/09/2012 12:24:00

Acer Cancels Press Conference To Launch New Smartphone on Alibaba Software

TAIPEI -(Dow Jones)- Taiwanese PC maker Acer Inc., (2353.TW) which had planned to unveil a smartphone Thursday using software from Chinese Internet firm Alibaba Group, said it is cancelling a press conference to launch the device after its existing partner, Google Inc. (GOOG), expressed concerns about the smartphone.

"Acer will continue to communicate with Google and the company still wants to launch the new smartphone based on Alibaba software," an official at Acer, who declined to be named, said.

Acer had planned to hold a press conference with Alibaba, China's biggest Internet company by transactions, on Thursday in Shanghai to unveil the new smartphone called CloudMobile A800. The smartphone runs on software from Alibaba called Aliyun. Acer had said that the new device would be going on sale Friday in China.

Alibaba said that Acer "was notified by Google that if the product runs Aliyun OS, Google will terminate its Android-related cooperation and other technology licensing with our partner....We regret Google's action."

A Google spokesman declined to comment.

Acer, traditionally a maker of desktop PCs and laptops, has been diversifying into making tablet computers and other mobile devices, as PC sales remain lackluster amid the global economic slowdown.

The company has predominantly relied on Google's Android operating software to power more than 90% of the smartphones it sells.

Write to Lorraine Luk at Lorraine.luk@dowjones.com and Juro Osawa at Juro.Osawa@wsj.com

Subscribe to WSJ: https://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

September 13, 2012 07:24 ET (11:24 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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