Fender guitars are a high to mid-range quality instrument. While not bottom of the line, they do have a fairly mellow tone though nothing even close to a Martin or a Taylor. The older model Fender acoustics were, imho, a better sounding guitar though they didn't have as much competition and they were well marketed in the 60s and 70s. Now, there are many various acoustic models that are as good as or more superior to the modern Fender acoustics. One thing that may help Fender is if they were able to corner the three-quarter guitar market somehow. No one seems to give much of a hoot about that market but there are a lot of people who would like to find smaller guitars.