Acer Chairman and Chief Executive J.T. Wang, said Microsoft's plans to launch its own "Surface" tablet in October would be "negative for the worldwide ecosystem" in computing.

Microsoft's "Surface" tablet would enter the market in direct competition with Acer's "Iconia" or Hewlett-Packard Co's "TouchPad" tablets.

"We have said think it over. Think twice. It will create a huge negative impact for the ecosystem and other brands may take a negative reaction. It is not something you are good at so please think twice," Wang is quoted as saying.

For the past two decades, Microsoft and personal computer makers have enjoyed a symbiotic relationship.

Campbell Kan, Acer's president for personal computer global operations, said the company was debating internally how to respond to the Surface.

"If Microsoft is going to do hardware business, what should we do? Should we still rely on Microsoft, or should we find other alternatives?," he is quoted as saying.

(Reporting by Stephen Mangan; Editing by Richard Chang)

• A Permanent Economic Emergency