Acer has revamped the development strategy for its smartphone business and will focus on generating profits instead of ramping up shipment volumes, according to ST Liew, president of Acer's smartphone business unit.

Acer still aims to ship 10 million smartphones in 2016, but how to expand earnings will be the major concern, Liew said.

Under the new policy, Acer also plans to reduce the number of new phones to be launched in 2016 to five models instead of 7-8 as originally planned, Liew added.

Meanwhile, Acer will also slow down its plans to move into the smartphone markets in India and Brazil, due to local market conditions, Liew indicated.

Competition in the India market has become too keen as most China-based vendors including Xiaomi, Huawei, Lenovo, Meizu and Coolpad have already entered the market, limiting the development potential for Acer, Liew explained.

In Brazil, consumers' purchasing power has weakened due to the deteriorating local economy, Liew added.