2.5 Assignment: ACER Case Study
COMPANY PROFILE
Acer Incorporated
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Acer Incorporated TABLE OF CONTENTS
Acer Incorporated © MarketLine
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TABLE OF CONTENTS
Company Overview ........................................................................................................ 3 Key Facts ......................................................................................................................... 3 Business Description ..................................................................................................... 4 History ............................................................................................................................. 5 Key Employees ............................................................................................................. 22 Key Employee Biographies .........................................................................................23 Major Products & Services ..........................................................................................24 SWOT Analysis ............................................................................................................. 26 Top Competitors ........................................................................................................... 29 Company View .............................................................................................................. 30 Locations And Subsidiaries ........................................................................................32
Acer Incorporated Company Overview
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Company Overview
COMPANY OVERVIEW
Acer Incorporated (Acer or ‘the company’) carries out research, design, marketing, sales and support of IT products. Acer’s product portfolio comprises servers, ICT devices, projector, tablet PC, personal computer, LCD monitor, and smartphone. It offers services including distribution of IT products, cloud services, real estate services, information security management and mobility applications. It also offers software systems development, systems integration, system operation services, value-added business solutions and internet data center services. The company markets products through Acer, Gateway, and Packard Bell brands. Acer has its presence across the US, Mainland China, Taiwan and Other countries. The company is headquartered in Taipei City, Taiwan.
The company reported revenues of (Taiwanese Dollars) TWD234,285.4 million for the fiscal year ended December 2019 (FY2019), a decrease of 3.3% over FY2018. In FY2019, the company’s operating margin was 1.3%, compared to an operating margin of 1.5% in FY2018. In FY2019, the company recorded a net margin of 1.1%, compared to a net margin of 1.3% in FY2018. The company reported revenues of TWD65,575.7 million for the second quarter ended June 2020, an increase of 34.2% over the previous quarter.
Key Facts
KEY FACTS
Head Office Acer Incorporated 8F, 88, Sec. 1 Xintai 5th Road New Taipei Taipei New Taipei Taipei TWN
Phone 886 2 27195000 Fax Web Address www.acer.com Revenue / turnover (TWD Mn) 234,285.4 Revenue (USD Mn) 7,585.0 Financial Year End December Employees 7,967 Taiwan Stock Exchange Ticker 2353
Acer Incorporated Business Description
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Business Description
BUSINESS DESCRIPTION
Acer Incorporated (Acer or ‘the company’) is a global provider of hardware, software, and services to information technology (IT) industry. The company offers marketing, research, design, sales and services for its portfolio of products, including personal computers (PCs), displays, projectors, servers, tablets, and other smart devices. Acer has its presence across 160 countries.
The company operates its business through two reportable segments: IT Hardware Products and Other.
Acer's IT Hardware Products segment provides marketing, research, design of tablet, IT and PC products. In FY2019, the IT Hardware Products segment reported revenue of TWD208,951.58 million, which accounted for 89.2% of the company's revenue.
The company's Other segment carries out distribution of IT products, virtual reality devices, e-commerce, cloud services, digital signage, real estate services activities handheld devices and smart devices. In FY2019, its Other segment reported revenue of TWD25,333.77 million, which accounted for 10.8% of the company's revenue.
In addition, Acer offers information and communication technology (ICT) solutions, including information security management, mobility applications, software systems development, systems integration, system operation services, value-added business solutions, and internet data center services. The company includes a family of three brands, including Acer, Gateway, and Packard Bell. The Acer brand offers laptops, desktops, tablets, smartphones, monitors, projectors, wearable devices, accessories, and gaming. Key sub-brands include consumer-focused Aspire series, and commercial focused TravelMate. The Gateway branded products include notebooks, desktops, and monitors. The Packard Bell brand offers notebook PCs. The company’s major customers include government, business, and education and home users. The company holds important contracts with leading companies including Microsoft Inc. (software license agreement); IBM Corporation and Microsoft Corp. (patent license agreement); and Bank of Taiwan, Chinatrust, Taiwan Cooperative, Megabank, Taipei Fubon, Taishin, Bank SinoPac, DBS, Chang Hwa, Landbank, Taiwan Business, KGI and Agricultural Bank of Taiwan (syndicated loan agreement).
Geographically, Acer classifies its revenue into four segments: the US, Mainland China, Taiwan and Others. In FY2019, Others segment reported revenue of TWD139,173.43.4million, which accounted for 59.4% of the company’s total revenue, followed by the US with TWD51,412.49 million (21.9%), Taiwan with TWD32,759.35 million (14%) and Mainland China with TWD 10,940.06million (4.7%).
Acer Incorporated History
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History
HISTORY
New Products/Services
Year: 2020
In January, the company launched the new ConceptD 7 Ezel Series Convertible Notebooks, and the new ConceptD 700 Workstation.
New Products/Services
Year: 2020
In January, Acer launched B250i portable LED projector with studio sound.
New Products/Services
Year: 2020
In January, Acer launched new Spin 5 and Spin 3, the updated models in its popular convertible notebook PC line.
New Products/Services
Year: 2020
In January, Acer launched the new USB-C based external display for laptops.
New Products/Services
Year: 2020
In June, Acer launched a Nitro 5 gaming laptop in India with 10th Generation Intel Core i7 H-Series mobile processors.
New Products/Services
Year: 2020
In June, Acer launched the Acer Veriton N series PCs in India.
New Products/Services
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Year: 2020
In September, Acer introduced two new gaming laptops, Predator Helios 300 and Predator Triton 300 in India.
New Products/Services
Year: 2020
In November, Acer announced the launch of the Enduro N3 laptop in India.
New Products/Services
Year: 2019
In January, the company launched the Chromebook 512 and the Chromebook Spin 512, the 12-inch Chromebook devices for educators.
Contracts/Agreements
Year: 2019
In March, the company collaborated with Envy to use Predator Gaming Hardware in the US.
New Products/Services
Year: 2019
In May, Acer launched two laptops which has AMD 2nd generation Ryzen Mobile processors with Radeon Vega graphics.
New Products/Services
Year: 2019
In August, Acer launched a new range of Predator gaming laptops in India.
New Products/Services
Year: 2019
In August, Acer announced to launch new AMD Ryzen powered notebooks.
New Products/Services
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Year: 2019
In September, Acer announced to introduce the Predator Triton 300 gaming notebook.
Contracts/Agreements
Year: 2018
In March, Acer partnered with Taipei Medical University Hospital, Changhua Christian Hospital and Kaohsiung Medical University Hospital to promote remote health management and smart healthcare services based on cloud.
New Products/Services
Year: 2018
In May, the company launched the Predator Helios 500 and a Helios 300 gaming laptops.
New Products/Services
Year: 2018
In May, the company launched its 15-inch Convertible Chromebook model in the market.
New Products/Services
Year: 2018
In May, the company launched the Acer Chromebook Spin 13 and Chromebook 13 focussed on Business use.
New Products/Services
Year: 2018
In August, Acer launched the 15-inch Swift 5 notebook PC weighing 990 gram.
New Products/Services
Year: 2018
In August, Acer introduced the Acer OJO 500, the first mixed reality and virtual reality headset.
New Products/Services
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Year: 2018
In August, Acer announced the launch of the Acer PL6610, PL6510, SL6610 and the SL6510 laser projectors for commercial and educational applications.
New Products/Services
Year: 2018
In May, the company launched its new Predator Orion 5000 series gaming desktops.
New Products/Services
Year: 2018
In May, the company introduced new Altos R880 F4 GPU server powered with NVIDIA Tesla GPUs.
Corporate Changes/Expansions
Year: 2018
In March, the company's StarVR deployed VR entertainment solution at Emaar Entertainment’s VR Park at The Dubai Mall.
New Products/Services
Year: 2018
In March, the company introduced the Acer Chromebook Tab 10 (D651N).
New Products/Services
Year: 2018
In March, the company launched the latest wearable device, the Leap Beads, for the Taiwan market.
New Products/Services
Year: 2018
In April, the company launched the latest version of its Nitro 5 gaming series, lauded for its refined styling and outstanding performance targeting casual gamers through the latest 8th Generation Intel Core i7 and Intel Core i7+ processors.
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New Products/Services
Year: 2018
In January, the company launched the New Swift 7, Redefining the World's Thinnest Laptop.
New Products/Services
Year: 2018
In January, the company launched new Nitro 5 Gaming Laptop.
New Products/Services
Year: 2018
In January, the company launched a new version of the Chromebook 11 with USB-C.
Contracts/Agreements
Year: 2018
In September, the company collaborated with Taiwan’s Yulon Group, Taiwan’s automakers, to launch self-driving concept car.
Corporate Changes/Expansions
Year: 2018
In December, AOPEN, a subsidiary monitor brand of the company, launched in India.
New Products/Services
Year: 2018
In January, the company launched TravelMate X3410 windows 10 business laptops.
New Products/Services
Year: 2017
The company introduced ultrathin gaming notebooks, detachables, and all-in-one PCs with advanced thermal technology. Also, Acer introduced a series of 10-inch tablets, including the Iconia Tab 10 (A3- A50) and the Iconia One 10 (B3-A40FHD) with dual micro-USB ports.
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Contracts/Agreements
Year: 2017
Acer selected Synaptics's Natural ID fingerprint sensors, a highly-secure SentryPoint technology for its new Switch 5 PCs.
New Products/Services
Year: 2017
Acer introduced Nitro 5 notebook line for casual gaming.
Acquisitions/Mergers/Takeovers
Year: 2017
In October, the company acquired additional shares in StarVR corporation from Starbreeze.
Corporate Awards
Year: 2017
In August, the company's short films Making Dreams Possible and The Predator 21 X Design Story - Facing Challenges Head On received Red Dot Awards.
New Products/Services
Year: 2016
Acer launched Iconia One 8 (B1-850), an 8-inch media tablet for families, children or novice users.
Contracts/Agreements
Year: 2016
grandPad and Acer entered into a strategic partnership to provide safe and simple technology to its consumers.
Contracts/Agreements
Year: 2016
Starbreeze and Acer boards approved the previously announced joint venture for design, manufacturing, promotion, marketing and sales of the StarVR Virtual Reality (VR) Head-Mounted Display (HMD).
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Corporate Changes/Expansions
Year: 2016
grandPad expanded its service to Switzerland, through a partnership with Swiss telecommunications provider, Swisscom.
New Products/Services
Year: 2016
Acer unveiled its Predator 21 X gaming laptop with an eye-tracking technology and GPU updates to the Predator 15/17 series notebooks.
New Products/Services
Year: 2015
Acer's subsidiaries, MPS Energy and BYOC ecosystem partner Studio X-Gene, jointly announced a new electric all-terrain vehicle (eATV).
New Products/Services
Year: 2015
Acer announced new Predator 8 GT-810 gaming tablet, and extended its high-octane Predator gaming series.
Corporate Changes/Expansions
Year: 2015
Acer expanded its smartphone business in the US with the release of Liquid M220 smartphone to Microsoft Stores. Acer also expanded its Liquid wearable line-up with the addition of Leap Active for socially active young-minded consumers, the Leap Fit for health-conscious consumers, and the Leap Curve with a unique curved screen for urban style-seekers.
New Products/Services
Year: 2015
The company launched two new cloud application solutions, including abPBX plus series for enterprises and aBeing series for individuals and other working environments.
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Corporate Changes/Expansions
Year: 2015
Acer in partnership with BOOKOFF, a major bookseller in Japan, expanded its Liquid smartphones into Japan. In the same month, the company expanded its line of Chromebooks for the education market with the addition of Acer Chromebook C910 and Acer Chromebook C740.
Acquisitions/Mergers/Takeovers
Year: 2015
Acer acquired Xplova, a GPS cycling computer brand. This acquisition is expected to enhance the company's presence in the sports industry.
Contracts/Agreements
Year: 2015
Acer partnered with Octon to expand its BYOC solutions into the field of telecommunications.
Corporate Changes/Expansions
Year: 2015
Acer established Acer Cloud Technology (Chongqing) in Xiantao Big Data Valley, Chongqing, China and expanded its BYOC operations in China.
Corporate Changes/Expansions
Year: 2015
The company extended its Predator gaming monitor lineup, including the curved Predator Z and the flat- panel Predator XB1, featuring NVIDIA G-SYNC.
Financing Agreements
Year: 2015
In August, the company along with Dentsu Ventures, and KDDI announced to invest US$11 million in Jibo Inc.
Contracts/Agreements
Year: 2015
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In June, Acer and Vedantu entered into a partnership to offer monthly tuitions for NTSE and PSA to students.
Contracts/Agreements
Year: 2014
Acer announced a cloud technology license agreement with an international customer for its cloud platform business. Also, Acer won a contract from the Victoria Police in Australia to provide hardware and services for its state-wide IT infrastructure. Under the contract, Acer will supply 11,500 units of the Veriton X4630 desktop PCs bundled with 24" Acer BL246HL monitors, together with 1,000 units of a blend of TravelMate P653 and P645 notebooks across Victorian Police stations throughout the state.
Contracts/Agreements
Year: 2014
Acer announced memorandum of understanding (MoU) with MediaTek for cloud and wearable technologies.
Corporate Changes/Expansions
Year: 2014
Acer expanded its Chrome OS devices with the launch of Chromebox CXI and Chromebook 11.
Corporate Changes/Expansions
Year: 2014
The company expanded its geographic presence with the launch of Android-powered Liquid E700 smartphones in Digicel stores in Bermuda, Jamaica and the Turks and Caicos Islands.
New Products/Services
Year: 2014
Acer launched Acer Chromebook 13, the first Chromebook powered by NVIDIA Tegra K1 mobile processor. This is expected to enhance the company's market position in the US.
New Products/Services
Year: 2014
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Acer launched Iconia Talk S, a tablet that supports 4G LTE and enhanced its Iconia tablet family product line.
New Products/Services
Year: 2014
Acer launched its new visual identity for build your own cloud (BYOC) as part of its business transformation to being a hardware, software and services company.
New Products/Services
Year: 2014
Acer introduced Aspire R 13 and Aspire R 14 Series, two new convertible notebook lines that can transition between various notebook and tablet style modes of operation.
New Products/Services
Year: 2014
The company launched Acer TA272 HUL Android All-in-one (AIO) that combines an ultra-high resolution 27-inch display and NVIDIA Tegra quad-core processor in 2014. In the same year, Acer introduced Acer Liquid Z5, a 5-inch smartphone designed for the budget conscious users and enhanced its liquid line of smartphones.
Contracts/Agreements
Year: 2013
Acer partnered with Intel Education Software to offer school solutions. Acer also collaborated with Taiwan's National Cheng Kung University to design and architecture for high performance computing.
Corporate Changes/Expansions
Year: 2013
Acer enhanced its Aspire S7 Ultrabook with improved battery life, a refined electroluminescent (EL) backlit keyboard, and second generation Acer TwinAir cooling with less fan noise.
Corporate Changes/Expansions
Year: 2013
The company entered in to the professional workstation market with the Veriton P series and new Altos
Acer Incorporated History
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servers.Thailand's Rangsit University selected Acer Smart Cloud Builder to host its administration and research applications. Acer announced support for the Intel Xeon E5-2600 v2 series processor across its line of high performance Altos servers and Veriton Workstations.
New Products/Services
Year: 2013
Acer announced cross-platform support for AcerCloud, the company's file sharing and media management solution, free to Acer customers. In addition, the company launched the Aspire Z3 series all- in-one PC for home entertainment and everyday computing. Acer launched its Acer C720 Chromebook line that features processors based on the Haswell micro-architecture.
Contracts/Agreements
Year: 2012
Acer formed a global alliance with thin client hardware/software provider, Devon IT, to address the increasing needs of commercial IT customers. The partnership aims at providing shared resource computing (SRC) solution in next generation business environment.
New Products/Services
Year: 2012
The company launched the light emitting diode (LED)-laser hybrid projector K520. Subsequently, Acer also introduced ICONIA TAB A510 Olympic Games Edition tablet PC; Aspire V5 Series notebook; and Aspire Timeline Ultra M3 ultrabook. Subsequently, the company also unveiled its series of Windows 8- based products, which includes the premium Aspire S7 Ultrabook, ICONIA W Series tablets.
New Products/Services
Year: 2012
The company launched the H6 Series LED-backlit monitors, featuring a built-in Mobile High-Definition Link (MHL) that directly synchronizes and displays content from any MHL supported mobile devices.
Contracts/Agreements
Year: 2011
Acer partnered with Ducati Corse, under which the company became the official partner of the motorcycle company. The partnership covers the supply of hardware including Acer branded clients and Gateway servers.
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Corporate Changes/Expansions
Year: 2011
Acer reorganized the former IT product global operations into two independent entities: Touch Business Group and PC Global Operations. The newly founded Touch Business Group comprised of the former tablet PC and smartphone teams, while the PC Global Operations consisted of the main PC product lines. Subsequently, the company completed the assembly of 177 TFLOPS Advanced Large Parallel System (ALPS) supercomputing system for Taiwan's National Center for High-performance Computing.
Corporate Changes/Expansions
Year: 2011
The company launched Acer Cloud Competency Center in Taoyuan, Taiwan. The center would offer proof of concept designs and new clustered computing solutions including high-performance computing and cloud solutions.
New Products/Services
Year: 2011
Acer launched Acer XB280HK gaming monitor equipped with NVIDIA G-SYNC technology. Subsequently, Acer launched Acer Liquid Leap, a touch-screen smart-band with fitness tracking, phone and SMS notification, and music control.
Contracts/Agreements
Year: 2010
Acer and Founder Group, one of China's high-tech companies, signed MoU to enhance and expand ICT business in China.
Contracts/Agreements
Year: 2010
Acer was awarded the contract for Taiwan's National Center of High-performance computing's overhaul of its major supercomputer in Taichung, central Taiwan.
Corporate Changes/Expansions
Year: 2010
The company and Founder Technology strengthened their long term PC business co-operation. As part
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of the co-operation, Acer would utilize Founder's channel network, into the tier four to six cities, rural markets and commercial market segment, especially in small and medium business accounts.
Corporate Changes/Expansions
Year: 2010
The company strengthened its presence in the mobile computing market with the launch of ICONIA, its tablet PC.
New Products/Services
Year: 2010
Acer introduced Clear.fi, a media sharing system where multimedia content is brought into a single system with a common interface to meet the demand for multi-platform content.
New Products/Services
Year: 2010
Acer launched the new Timeline series notebook, Aspire 3811TZ/TZG, made with materials free of polyvinyl chloride and brominated flame retardants in 2010. Also, the company launched new high- density servers equipped with NVIDIA Tesla 20-series graphic processing units (GPUs).
Plans/Strategy
Year: 2010
Acer planned to build a new global IT manufacturing center with its partners and set up a second base in China in the city of Chongqing.
Contracts/Agreements
Year: 2009
Acer joined Open Handset Alliance, a group of mobile and technology leaders who work towards changing the mobile experience for consumers.
New Products/Services
Year: 2009
The company released a set of Tempo smartphone series, including the M900, the F900, the X960, and the DX900. Subsequently, the company introduced its new smartphone Liquid series: the first Qualcomm
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Snapdragon processor based and Android 1.6 high definition smartphone.
Acquisitions/Mergers/Takeovers
Year: 2008
Acer's subsidiaries, Acer Europe and Gateway acquired a controlling stake in PB Holding, the parent company of Packard Bell. The company acquired E-Ten Information Systems, a handheld device company based in Taiwan.
New Products/Services
Year: 2008
The company introduced the Aspire PREDATOR line of desktop computers to PC gaming enthusiasts. Subsequently, Acer along with its partners introduced Acer-Hitachi SMS 100, a storage product designed for the needs of small and medium sized businesses in 2008. During the same year, Acer added ColorBoost II and EcoProjection technologies to its video projectors.
Acquisitions/Mergers/Takeovers
Year: 2007
Acer acquired iGware, a cloud technology company based in the US for $320 million.
Acquisitions/Mergers/Takeovers
Year: 2007
Acer acquired Gateway, one of the largest PC companies in the US.
Contracts/Agreements
Year: 2007
Acer was awarded the Bangkok Metropolitan Authority tender to supply 21,000 PCs and servers for the School Computer Development Project.
Research Grant
Year: 2007
Acer Intellectual (Chongqing), a global R&D center was inaugurated to enhance the company's development in smartphones and tablet PCs. The center would cooperate with Chongqing municipal government and China Mobile in researching and developing smart handheld devices as well as related
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software and services.
Contracts/Agreements
Year: 2006
The company and Yahoo! formed a multi-year partnership to set Yahoo! as the default search engine on all Acer PCs sold globally.
Others
Year: 2006
Acer became the first company to provide a range of notebooks with dual-core processing technology covering all market segments.
New Products/Services
Year: 2003
Acer launched the Ferrari 3000, a Ferrari-red color notebook.
Contracts/Agreements
Year: 2002
Acer Foundation and Cadence Design Systems formed a strategic alliance in Taiwan.
Corporate Changes/Expansions
Year: 2001
Acer's affiliate, Acer Communications & Multimedia, changed its name to Benq and began operations as an independent brand.
Patent Grant
Year: 2001
Acer licensed the Palm OS operating system, which helped the operating system to expand into the Asia- Pacific and Chinese markets.
Stake Sale
Year: 2001
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The company sold 100% of its holdings in Taiwan Semiconductor Technology to Amkor Technology.
Contracts/Agreements
Year: 2000
Acer peripherals entered into a strategic alliance with Gallant Precision Machining
Corporate Changes/Expansions
Year: 2000
Acer established its design and manufacturing services and Acer brand operations units and separated its original equipment manufacturing (OEM) and branded businesses from these units.
Stock Listings/IPO
Year: 2000
The company privatized its Mexican Stock Exchange listed subsidiary, Acer Computec Latino America.
Contracts/Agreements
Year: 1999
Acer and Computer Associates, a business computing software and services provider, entered into a joint venture to capture an increasing share of Asia's growing market for business management software. Also, Acer and Cisco Systems signed a memorandum of understanding (MoU) to promote Cisco's IP Telephony solutions in Taiwan. Acer and General Electric (GE) information services also formed an alliance to set up business-to-business (B2B) e-commerce services in the Asia-Pacific region.
Acquisitions/Mergers/Takeovers
Year: 1997
The company acquired of Texas Instruments' mobile computing business.
Acquisitions/Mergers/Takeovers
Year: 1990
The company acquired Altos, a manufacturer of UNIX computer systems.
Stock Listings/IPO
Acer Incorporated History
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Year: 1988
Acer's initial public offering (IPO) on the Taiwan Stock Exchange took place.
Corporate Changes/Expansions
Year: 1987
The company started trading under the Acer brand and officially changed its name from Multitech to Acer.
Corporate Changes/Expansions
Year: 1985
The company began its expansion into overseas markets by setting up branch offices in Japan and Germany.
Incorporation/Establishment
Year: 1976
Mr. Stan Shih, together with his wife, Ms. Carolyn Yeh, and five other partners co-founded Acer. The company was originally known as Multitech.
New Products/Services
Year: 1976
Acer designed Taiwan's first mass produced computer product for export.
Acer Incorporated Key Employees
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Key Employees
KEY EMPLOYEES
Name Job Title Board Jason Chen Chairman, Chief Executive Officer Executive Board Stan Shih Director Non Executive Board F.C. Tseng Director Non Executive Board Ji-Ren Lee Director Non Executive Board Carolyn Yeh Director Non Executive Board Philip Peng Director Non Executive Board Emmanuel Fromont President-EMEA, Vice President Senior Management Ben Wan President-E-Business Senior Management Tiffany Huang Co-Chief Operating Officer Senior Management Maverick Shih President Senior Management Jerry Kao Co-Chief Operating Officer Senior Management Gregg Prendergast President-Pan-America
Operations Senior Management
Andrew Hou President-Pan-Asia Pacific Operations
Senior Management
Victor Chien President-Digital Display Business Senior Management RC Chang Chief Technology Officer Senior Management Sophia Chen Accounting Officer Senior Management George Huang Director Non Executive Board San-Cheng Chang Director Non Executive Board Ching-Hsiang Hsu Director Non Executive Board Charles Hsu Director Non Executive Board Meggy Chen Chief Financial Officer Senior Management Simon Chang Director Non Executive Board Sudhir Goel Chief Business Officer, Acer India Senior Management Lydia Wu General Counsel Senior Management
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Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
Jason Chen
Board:Executive Board Job Title:Chairman, Chief Executive Officer Since:2017
Mr. Chen has been appointed as the Chief Executive Officer and Chairman at Acer since 2017. Previously, Mr. Chen was the Senior Vice President of Worldwide Sales and Marketing and Vice President at TSMC. Before that, he was the General Manager and Vice President in Intel.
Acer Incorporated Major Products & Services
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Major Products & Services
MAJOR PRODUCTS & SERVICES
Acer Incorporated (Acer or 'the company') manufactures and supplies information technology products and services. The major products, services and brands offered by the company include the following:
Products:
Desktops Notebooks Tablet PCs Servers and Storage Handhelds Monitors Projectors LCD TV Displays Softwares Batteries Adapter and Power Kits Bags and Covers Storage and Drives Keyboards Docks and port Replicators Cables Cords Clips Projector Mounts and Lamps Chromebooks
Services:
Distribution of IT products Cloud Services Real estate Services Information Security Management Mobility Applications Software Systems Development Systems Integration System Operation Services Value-added Business Solutions Internet Data Center Services
Brands:
Acer
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Gateway Packard Bell Eten eMachines
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SWOT Analysis
SWOT ANALYSIS
Acer Incorporated (Acer or 'the company') is engaged in the research, design, marketing, sales and support of personal computers (PCs), tablets, smartphones, liquid crystal display (LCD) monitors, servers, projectors, and information and communication technology (ICT) devices. Awards and recognition, and wide geographic presence are the company’s major strengths, even as trade receivable remains a cause for concern. Global IT hardware market, global IoT market, and global software market are likely to offer growth opportunities for the company. However, the impact of COVID-19, adverse trends in the PC market, and complexities in IT environment could affect its business operations.
Strength
Awards and recognition Wide geographic presence
Weakness
Trade receivables
Opportunity
Global IT hardware market Global IoT market Global software market
Threat
Adverse trends in the PC market Complexities in IT environment Coronavirus (COVID-19) Outbreak
Strength
Awards and recognition
Acer has received various awards and recognitions in the last few years and occupies a dominant position in the global market as one of the provider of hardware, software and services to information technology (IT) industry. The company’s product portfolio comprises server, ICT devices, projector, tablet PC, personal computer, LCD monitor, and smartphone. In FY2019, the company has received iF Design awards for products include, Predator X gaming desktop, Swift 7 ultrathin notebook, Predator Triton 900 gaming notebook, Acer smart speaker and Predator Thronos gaming chair. Acer’s ultrathin and light swift 7 has been awarded CES 2019 Innovation award. In FY2018, the company’s Acer OJO 500 Windows Mixed Reality headset, Swift 7 ultrathin laptop, and Acer Chromebook 11 received Good Design Awards of 2018 in Japan. Its Acer Chromebook 11, Acer Chromebox, Swift 7 and Switch 7 Black Edition notebooks received d&i Awards 2018. The company’s Predator Triton 700 notebook, Predator Galea 500 headset, Nitro 5 notebook, Nitro RG0 and VG0 series monitors, Swift 5, Spin 5 convertible, Swift 7 series of notebooks, Veriton N series desktops, and VL7860 and C200 projectors received 13 Red Dot Design Awards 2018in Germany.
Wide geographic presence
The company operates on a global scale. Wide spread geographic presence insulates it from region specific risks and also facilitates stable revenue growth. It sells its products in consumer and business
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markets through sales offices in Taiwan and through its sales subsidiaries and independent distributors overseas. Acer has a diversified geographic presence. The company operates in the US, Mainland China, Taiwan, and Others. Its largest geographic market, Others, accounted for 59.4% of its total revenue in FY2019. This was followed by the US (21.9%), Taiwan (14%) and Mainland China (4.7%).
Weakness
Trade receivables
Increasing receivables could adversely affect the company’s cash flows. Acer has reported increase in its trade receivables. The company’s trade receivables stood at TWD49,466.46 in FY2019, as compared to TWD47,536.3 million in FY2018. The company maintains a substantial amount of current assets in the form of receivables. In the FY2019, the company’s trade and other receivables accounted for 40.63% of its current assets. Such increasing accounts receivable reflects inefficient credit management by the company. In the backdrop of recovering economic slowdown, the probability of defaults by any of creditors increased may impact the overall financial position of the company.
Opportunity
Global IT hardware market
The company is likely to benefit from the growing hardware infrastructure market. According to in-house research, the global IT hardware market is expected to grow to reach a value of US$300.6 billion in 2023. The client computing & peripherals segment of IT hardware market accounted for 52.7% of market share, followed by server computing with 19.3%, network infrastructure with 13.8%, storage infrastructure with 10.4% and security hardware & appliances with 3.7%. The US is projected to dominate the market with a share of 34.9%, followed by Asia-Pacific (30.4%), Europe (25.5%), Middle East (0.3%), and rest of the world (9%). The company’s IT hardware products include battery products, transformers, fans, motors, solenoids, driver, switches and other related products.
Global IoT market
IoT refers to the holistic interconnection of services, applications, business processes, people and devices with a network or Internet in order to share information and perform certain tasks without any human intervention. According to in-house research, the global IoT enterprise market is forecast to reach US$318 billion by 2023. The software and service category will account for 71.2% of the expenditure on IoT by 2023, followed by devices (17.3%), and connectivity (11.6%). The company produces IoT enables devices including Chromebooks, Tablets, PCs and smartphones.
Global software market
The company is likely to benefit from the growing software market. According to in-house research, the global software market is expected to reach US$425.2 billion by 2022. The software infrastructure accounted for a market share of 46.3%, followed by enterprise applications (31.1%), information
Acer Incorporated SWOT Analysis
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management (13%), security software (7.1%) and enterprise mobility management (2.4%). The US dominated the software market with a share of 31.4%, followed by Europe (30.5%), Asia-Pacific (25.5%), Middle East (4.1%), and Rest of the World (8.5%). The company developed software for Windows, Android, and third party operating system.
Threat
Adverse trends in the PC market
The global PC market has been decelerating recently. A broader slowdown in the economy, particularly in developing economies that had been growing very quickly in the recent past, and new competition from the iPad, other tablets, and smartphones are contributing to deteriorating PC sales. Global economic issues like falling commodity prices and weak international currencies, as well as social disruptions in EMEA and Asia-Pacific that disrupted foreign markets, were a large factor behind weak PC sales. The adverse impact of the continued PC sales declines will be detrimental for the company.
Complexities in IT environment
The company offers complex IT solutions to its customers, which makes it prone to various risks arising from IT complexity. For example, in spite of testing and quality control, the company cannot guarantee the absence of shortcomings in the present versions or advanced versions of its products. It could face challenges if products contain undetected errors or if services fail to meet customer expectations. The deployment of products across a wide range of platforms, integration of software with third-party software applications and databases are some of the major challenges for the company. The company requires huge investments for the successful implementation of software and integration of various product components. These complexities restrict the company’s ability to satisfy the requirements of IT infrastructure.
Coronavirus (COVID-19) Outbreak
The coronavirus (COVID-19) pandemic affected global economy severely. It resulted in huge human loss, and protection measures such as isolation, lockdown, quarantine, and social distancing to contain the spread of the virus brought economic activity to a standstill. It affected international economic and trade functions, ranging from tourism and hospitality, medical supplies and other global value chains, consumer electronics, and financial markets to energy, transportation, food, and various social activities. Based on the current state of affairs and the containment measures required in the second quarter in most countries, World Economic Outlook report for April forecast that global growth will be -3% in 2020 compared to 2.9% in 2019. If the pandemic continues to ravage the world in the second half of this year, growth is expected to fall another 3% in 2020, and if it continues into 2021, the global economy may fall 8%. Advanced Economies, and Emerging Markets and Developing Economies are projected to report growth of –6.1% and –1.0% in 2020, compared to 1.7% and 3.7%, respectively, in 2019. The outbreak of COVID-19 has impacted the global economy, due to which company may be impacted and may face interruptions in its operations.
Acer Incorporated Top Competitors
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Top Competitors
TOP COMPETITORS
The following companies are the major competitors of Acer Incorporated
Apple Inc ASUSTeK Computer Inc. Dell Technologies Inc. Fujitsu Limited HP Inc. Samsung Electronics Co Ltd. Sony Corporation Toshiba Corporation
Acer Incorporated Company View
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Company View
COMPANY VIEW
A statement by Mr. Jason Chen, the Chairman and Chief Executive Officer at Acer Incorporated, is given below. The statement has been taken from the company's 2019 annual report.
Acer has made significant progress with the dual transforma - tion of our core business and new initiatives in 2019, and we are pleased to share with you key developments that dem - onstrate the forward-looking mindset of a sustainable com - pany. Opportunities as well as challenges have arisen, in fact, the industry's CPU supply issue that began in late 2018 per - sisted throughout 2019, and has been reflected in our con - solidated revenues, which was down slightly year-over-year at NT$234.29 billion, with net income of NT$2.63 billion, and earnings per share (EPS) at NT$0.87.
The pursuits in technological innovation, broadening the boundaries of the PC business and new markets, and creat - ing multiple growth engines are the foundations of Acer's dual transformation. In the PC business we have focused on segments with growth opportunities, such as ultra-slim note - books and gaming PCs. Our efforts have been rewarded with year-on-year growth for Acer gaming PC and ultrathin note - book shipments exceeding the industry (Source: FY2019, GfK & NPD), and ranking No. 2 in Taiwan patent applications with 565 filings – up 19% from the previous year. At the same time, Acer's corporate responsibility efforts have consistently been recognized by global sustainability indices that benchmark environmental, social and governance (ESG) performance of organizations. For the sixth consecutive year we have been listed in the Dow Jones Sustainability Indices (DJSI) Emerging Markets Index.
In the gaming field, Acer has created an ecosystem with pow - erful PCs and cool gadgets, esports events, and an esports social platform. Our flagship Predator PCs, and Predator Thro - nos gaming chair provide the ultimate gaming experience. We not only sponsored esports events but also hosted our own Asia Pacific Predator League with growing success. The 2019 tournament drew 3,530 teams who competed for months and battled for the championship in Thailand. The 2020 fi - nals will bring the league to a higher level with almost 20,000 tickets sold already. Finally, Planet9 is our new brand and lat - est venture in gaming announced in September. Currently in open beta stage, it is an open community platform that allows players to build their team, train, and challenge for victory. Through esports, Acer will engage new audiences while bring - ing innovations and game-changing designs first to market.
In the PC business we have continued to challenge ourselves and innovate. We maintained our leading edge in the thinand-light notebook segment with the Swift 5 as the world's lightest 14-inch notebook, under 900 g. Worldwide, Acer gaming monitors ranked No. 1 (Q1-Q3 '19, IHS). As we con - tinue our leadership in these two segments, we unveiled a new brand of high-end PCs and monitors optimized for creators such as graphic designers, filmmakers, engineers, architects, developers and others. The pristine yet powerful ConceptD portfolio, with quiet operation and high color accuracy, has been hailed as the Windows comparison of the Apple Mac, as well as receiving more the 40 “Best of Show” accolades re - cently at the CES consumer show, reflecting the media's posi - tive reception of the brand.
Making up the other part of Acer's dual transformation is our multiple business engines, which have kept their momentum and have seen viable growth, these include Acer Cyber Secu - rity, Acer Synergy Tech (AST), Weblink International, and Acer e-Enabling Service Business, and more. The strategy of list - ing
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our subsidiaries is also progressing accordingly. During the fourth quarter, AST became listed on the emerging market of the Taipei Exchange, Weblink International began its public offering process, with more in the pipeline. These new businesses are also making steadily increasing contribution to Acer's overall revenues.
Many of our new initiatives are making good progress. Gad - geTek captured great international media attention with the launch in the Vatican of the “Click to Pray eRosary” smart wearable for the Catholic community, reaping 2500 media ar - ticles. In the biotech realm, we forged a cross-industry coop - eration with Novartis Taiwan, where the companies will focus on artificial intelligence (AI) technology in areas such as clini - cal trial design, disease detection, and patient care integra - tion. Acer and Novartis will benefit from each other's global operations to bring smart medical products to markets, forming a win-win opportunity.
More exciting developments of our AI-based technologies include the indoor smart air monitor solution, developed by our AI research team in collaboration with experts in the field of air quality. Plans are in place to serve 1300 locations including schools in mid and southern Taiwan in 2020. Acer will provide a one-stop shop air quality improvement solution from detection, data analytics, reporting, solution, to maintenance. Also, in the realm of smart cities, following the success of Taiwan's first roadside Smart Parking Meter BOT project in Tainan by Acer ITS, more smart parking meters will be promoted to be implemented in other cities.
Without a doubt, Acer has so much under development and we are constantly seeking for new prospects. With your trust and support, Acer's goal is to bring higher value to our customers, shareholders and employees, and to become an indispensable part of life.
Thank you.
Acer Incorporated Locations And Subsidiaries
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Locations And Subsidiaries
LOCATIONS AND SUBSIDIARIES
Head Office
Acer Incorporated 8F, 88, Sec. 1 Xintai 5th Road New Taipei Taipei New Taipei Taipei TWN Phone:886 2 27195000 www.acer.com
Other Locations and Subsidiaries
Acer Africa (Pty) Ltd Acer House Naivasha Road, Sunninghill, Ext. 85 sandton sandton ZAF Phone:27 112336100 Fax:27 11 233 www.acer.co.za
Acer America Corporation 333 W. San Carlos Street Suite 1500 San Jose California 95110 USA Phone:1 408 533 7700 Fax:1 408 533 4555 http://us.acer.com
Acer Computer (Switzerland) AG Moosmattstrasse 30 8953 Dietikon CHE Phone:41 44 745 58 58 Fax:41 44 742 06 16 http://http://www.acer.ch/
Acer Incorporated 3F., No.139, 300 Minzu Road East District Hsinchu Hsinchu TWN
Acer Incorporated 3F., No.371, Sec. 1 Wenxin Road Nantun Nantun TWN
Acer Incorporated 4F.-2, No.38 Xinguang Road Lingya District Kaohsiung Kaohsiung TWN
Acer Incorporated No.138 Nangong Road
Acer India (Pvt) Ltd 6th Floor, No.13 Embassy Heights, Magrath Road
Acer Incorporated Locations And Subsidiaries
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Luzhu Township Taoyuan Taoyuan TWN
Bangalore Karnataka Bangalore Karnataka IND Phone:91 80 39408700 Fax:91 80 25329535 www.acer.co.in
Acer Sales & Services Sdn. Bhd Level 24, Bangunan AmFinance No. 8 Jalan Yap Kwan Seng Kuala Lumpur Kuala Lumpur MYS Phone:60 3 2162 1388 Fax:60 3 2162 4949 www.acer.com.my
Gateway, Inc. 7565 Irvine Center Drive Irvine California Irvine California USA Phone: 949 4717000 www.gateway.com
A Progressive Digital Media business
John Carpenter House, John Carpenter Street, London, United Kingdom, EC4Y 0AN T: +44 (0) 203 377 3042 | F: +44 (0) 870 134 4371 | E: reachus@marketline.com | W: www.marketline.com
- Company Overview
- Key Facts
- Business Description
- History
- Key Employees
- Key Employee Biographies
- Major Products & Services
- SWOT Analysis
- Top Competitors
- Company View
- Locations And Subsidiaries