Acer Company Profile

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Acer
Company Profile

by Faulkner Staff

Docid: 00011539

Publication Date: 2210

Report Type: VENDOR

Preview

Acer is a PC vendor based in Taiwan that makes desktop and portable
computers as well as other electronics products. The company sells
products under several major computer brands: Acer, Packard Bell, Acer
Business (formerly Gateway), and the new Gateway brand that is a Walmart
exclusive. The company has been impacted by the same fluctuations in PC
sales that have affected every other manufacturer. As a result, it
occasionally drops out of the ranking of the top five PC manufacturers,
although it maintains a strong position as a distributor of
Chromebooks.

Fast Facts

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Acer, Inc.
8F, 88, Sec.1, Hsin Tai Wu Rd
Hsichih, Taipei 221
Hsien 221, Taiwan
Phone: 886-2-696-1234
Fax: 886-2-696-3535
Web: http://www.acer.com/
Service Areas: US/Europe, the Middle East, and
Africa/Asia-Pacific
Founded: 1987 (previously known as Multitech from 1976 to
1987)
Stock Symbol: 2353 (Taiwan Stock Exchange)
Number of Employees: 7,855 (as of March 2022)

Profile

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Acer is a leading global PC and tablet manufacturer. Headquartered in
Taiwan, it designs, assembles, and sells its own brand of desktop,
notebook, chromebook, and tablet systems and also sells the products of
companies it has purchased, such as Packard Bell. Traditionally, Acer has
been among the top manufacturers of PCs, but often battles back and forth
with fellow Taiwanese vendor Asus for the fifth slot. For instance,
International Data Corporation (IDC) showed Acer in fourth place in its
second quarter 2022 analysis of PC shipments¹ but fell to sixth
behind Apple and Asus in the third quarter. For the third quarter,
however, Acer led all vendors in worldwide Chromebook shipments.²
The company also manufactures and sells a variety of other electronic
devices, including displays, networking hardware, peripherals, and more.

History & Milestone Events

Acer has focused on building computers and microprocessors since its
inception in 1976. Major events in the company’s history include:

1976 – Is founded on August 1st as “Multitech.”
1978 – Establishes the microprocessor training
center, training 3,000 staff for Taiwan’s information industry.
1979 – Designs Taiwan’s first mass-produced computer,
for export.
1981 – Establishes manufacturing operations in the
Hsinchu Science based Industrial Park, Taiwan; launches MicroProfessor-I
as its first Acer branded product.
1982 – Launches MicroProfessor-II, an 8-bit home
computer.
1983 – Becomes the first company to promote 16-bit PC
products in Taiwan.
1984 – Creates Acer Peripherals and Multiventure
Investments.
1987 – Officially renames itself “Acer.”
1988 – Launches its IPO, on the Taiwan Stock
Exchange.
1989 – Launches its DRAM joint venture company, with
Texas Instruments.
1999 – Institutes the Aspire Academy, for helping
firm managers in Asia improve their organizational effectiveness.
2000 – Splits off its OEM unit to create Wistron.
2002 – Launches the Aspire family of home PCs.
2005 – Names JT Wang as president and CEO.
2007 – Acquires Gateway and its eMachines brand.
2008 – Acquires 100 percent stake in Packard Bell,
and smart handheld device vendor E-ten.
2009 – Surpasses Dell to become the second most
popular PC brand, worldwide, in the third quarter.
2011 – Appoints Jim Wong as new Corporate President
after the resignation of CEO and President Gianfranco Lanci. Wong
establishes a “touch business group” to research innovations for
portable devices.
2012 – Sues former CEO and President Lanci in Italy
for breaching a no-compete clause when he left Acer to join Lenovo; Is
investigated by the US International Trade Commission over charges it
infringed on US patents held by Technology Properties, Patriotic
Scientific Corp., and Phoenix Digital Solutions.
2013 – Appoints new CEO and president Jason Chen,
formerly of Taiwan Semiconductor Manufacturing Co. (TSMC), after the
company posted a record loss.
2014 – Returned to profitability on strength of
low-cost PC sales and Chromebooks.
2015 – During the year, Acer acquires Xplova, a
company specializing in GPS cycling computers. It also invests in a
robotics startup company named Jibo.
2016 – Acer forms a joint venture with Starbreeze AB
to design, create, and market a line of StarVR Virtual Reality
Head-Mounted Displays. Later in the year, it acquired Wi-Fi pet camera
maker Pawbo, and invested in grandPad, a maker of technology for senior
citizens.
2017 – Acer rises to fifth place in the global PC
sales ranking chart, according to Business Insider.
2018 – Acer enters the self-driving car market via a
new alliance with Taiwan’s Yulon Group and its Luxgen subsidiary.
2019 – Acer makes its largest commitment yet to the
gaming PC and peripheral market, debuting several new high-end gaming
laptops, new 144hz refresh rate monitors in various sizes, and its own
VR hardware.
2020 – Acer revives the Gateway
brand, positioning the division as a consumer-focused, low-cost PC brand
that will sell exclusively through the Walmart chain of retail stores
and Web sites.
2021 – Early in the year, Acer briefly lost its fifth
place spot to competitor Asus, but just barely regained the slot by the
end of the second quarter.²
2022 – Facing criticism for continuing to operate in
Russia following that country’s invasion of Ukraine, the company
ultimately announces it will suspend business in Russia, where it holds
the second-largest share of the PC market. The firm says, however, that
it will continue to keep its Russia office in operation.

Strategy

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Acer’s long-term strategy is to make technology accessible to as many
users as possible. Its stated mission is to facilitate “breaking down
barriers between people and technology.” The company says that it values
being “curious,” “progressive,” and “human.” Acer looks to enhance its
worldwide presence through its a multi-brand strategy including Acer, Acer
Business, and Packard Bell. It also heavily markets its low-cost products
to end-users, including its line of lightweight Chromebooks using Google’s
Chrome OS platform.

The Acer growth strategy includes enhancing its channel business model,
improving global operations management, increasing its focus on corporate,
social responsibility, and generating more proportionate revenues. Acer’s
partner strategy includes reinforcing cooperation with first-tier
suppliers and channel partners, better capitalizing on partner resources,
forming alliances with well-known lifestyle brands, and offering
incentives rewards to its partners.

The company is also aiming to become a powerhouse in the PC gaming
market. Its Predator, Triton, and Helios lines all received major
expansions and refreshes over the past few years, as the company showed a
renewed push into the PC gaming field, competing with more niche entrants
in this field by creating both extremely high-end models at premium price
points, and mid-range units designed to attract gamers on a budget. The
company also innovated in several areas, becoming one of the first device
makers to debut a 144hz refresh rate screen for console gaming, and
monitors with up to 360hz refresh rates for PC gaming. The company has
also created several novel laptop designs, including models with sliding
keyboards and pivoting screens capable of rotating 360 degrees.

Strengths

Acer remains a top-tier player in the traditional global PC market, but
has also diversified to become a popular brand name in areas such as
monitors, projectors, tablets and two-in-ones, and PC components. The
company ranked fifth in the global PC marketplace at the middle of 2021,
although its notebooks and tablets have historically ranked higher in
places like Europe.³ Acer is also in an advantageous position
as a provider of consumer electronics to the increasingly tech-hungry
Chinese market. The company’s Taiwanese origins give it a foothold on the
doorstep of what is rapidly becoming the nation with the highest
population of Internet users in the world.

Weaknesses

Acer continues to battle both government regulations and a very
competitive global PC marketplace. Sluggish economic conditions in the US,
Europe, and Asia Pacific have resulted in weaker consumer demand.
Unfortunately for Acer, any drop in PC sales impacts it more deeply than
most, as it relies on a high-volume, low value business model. This means
that the company needs a significant number of PCs to be sold for it to
turn any kind of sizable profit due to the low cost of each unit. When PC
sales are trending downward, this puts Acer in a precarious position. On
one hand, their lower-cost systems are more in the range of an impulse buy
than their competitors’; on the other, the lack of interest in their
flagship product variety means consumer interest is still waning. That
said, the company’s global market share was deeply impacted by the global
COVID-19 pandemic, which has boosted PC sales by greatly expanding the
number of workers requiring a laptop or desktop to facilitate
work-from-home setups. Because of this, PC sales grew by more than 3.1
million units, year-over-year, with Acer alone showing 300,000 additional
sales when compared to the same period in 2020. More recently, the ensuing
worldwide inflation as well as continuing COVID concerns, especially in
China, are impacting sales for the company.

Outlook

Global economic uncertainty has forced Acer, like many of its
competitors, to take a conservative approach to rolling out new products.
Acer continues to focus on its multi-brand strategy, a key factor that
encompasses both global brand management and differentiated product line
design. It will also continue to focus on growth in the US, China, and
Japan to gain more of a foothold in improving its worldwide revenues.

Acer competes in a PC sector where the top three competitors (Lenovo, HP,
and Dell) continue to dominate the market share. To combat this, Acer
seems to be reaching out to niche consumer markets, such as the
aforementioned PC gaming market, where the decline in sales has not been
felt as keenly. These “enthusiast” sectors of the PC market continue to
purchase pricier systems that are a hard sell to the general public, while
also belying the global downward trend in PC purchases. Whether or not
appealing to these subcultures within the PC user base will be enough to
buoy Acer remains to be seen.

The impact of COVID-19 also remains an uncertainty. Pre-pandemic, many
users were able to get by with tablets and smartphones at home, but the
advent of work-from-home scenarios required many to purchase a full
desktop or laptop PC for video conferencing, remote desktop situations,
and more. Because of this, PC sales saw the aforementioned bump. The
market has now reached a point where those work-from-home employees have
reach their saturation point for PCs, returning the market to the general
downward trend it had seen in recent years prior to the pandemic. Acer
once again finds itself trying to convince the average consumer that they
truly need a powerful PC at home. The company’s success largely relies on
its ability to fulfill this requirement.⁴

Product Lines

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Acer’s products include desktops, laptops, netbooks, tablets, storage
devices, displays, and peripherals. For the 2021 fiscal year, 64 percent
of the company’s revenue came from notebooks, 10 percent from desktop PCs,
10 percent from displays and monitors, and the remaining 16 percent from
other sources that are primarily non-hardware.⁵

Table 1 outlines Acer’s core product lines.

Table 1. Acer Product Lines
Products	Description	Competitors
Mobility and Tablet PCs	Ultrabooks, Laptops, Chromebooks, and Tablets under the Aspire, Swift, Enduro, Predator, and Helios brands.	HP, Dell, Samsung, Apple, Fujitsu, Lenovo, NEC, Toshiba, Asus
Desktops, Workstations, and All-in-Ones	Desktop PCs, workstations, and all-in-one systems under the Acer Business, Aspire, Chromebox, and Veriton brands.	HP, Dell, Apple, Fujitsu, Lenovo, NEC, Sony, Toshiba, Asus
Monitors and Projectors	Includes touchscreen and 3D monitors, and projectors for business and travel.	Samsung, LG, Toshiba, Apple, Dell, NEC, Hitachi, Sharp, Sony, Epson

Major Competitors

Activity

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Products and Services

Acer is debuting its first Chromebook
optimized for Cloud gaming – the Acer Chromebook 516 GE providing instant
access to full PC and console games powered by the cloud. The new Acer
Chromebook 516 GE is powered by 12th Gen Intel Core processors, a 120Hz
display, an RGB keyboard with anti-ghosting technology, and advanced DTS
audio. To support cloud gaming on ChromeOS, Google is also providing for a
limited time a three-month free trial of NVIDIA GeForce NOW’s highest
performance tier, Xbox Cloud Gaming (Beta), and Amazon Luna. The
Chromebook 516 GE laptop will be available in the United States in October
starting at USD 649.99.
(10/11/2022)

Acer has introduced the world’s
lightest 16-inch OLED laptop, the Acer Swift Edge (SFA16-41). Designed for
a hybrid workforce, the 16-inch laptop is powered by AMD Ryzen PRO 6000
Series and AMD Ryzen 6000 Series processors and incorporates the Microsoft
Pluton security processor to help defend against increasingly
sophisticated attacks. The lightweight laptop boasts a sleek design,
weighing only 1.17 kg (2.58 lbs.) and measuring 12.95 mm (0.51 inches) in
height. The AMD Ryzen PRO 6000 Series and AMD Ryzen 6000 Series processors
provide exceptional processing speed and smooth responsiveness. The
processors integrate Microsoft Pluton, a security processor designed by
Microsoft, that hardens new Windows 11 PCs with additional protection for
sensitive assets like credentials and encryption keys. To further keep
users at ease, the addition of biometric authentication and a Noble Wedge
Lock slot provides an added layer of security protection to help safeguard
user and company data. The Swift Edge will be available in October in
North America starting at USD 1,499.99.
(10/07/2022)

Acer announced new models in its
professional line of ConceptD creator PCs: the ConceptD 5 laptop, ConceptD
500 mini workstation, and ConceptD 100 small form factor desktop. These
machines are designed and optimized for graphic designers, filmmakers,
engineers, architects, developers, and other creators. The ConceptD 5 and
ConceptD 5 Pro creator laptops are equipped to handle large, complex CAD
modeling and advanced digital content creation, smoothly rendering up to
6K-resolution videos, processing 3D animations, and delivering top grade
encoding and image quality for livestreaming. The mid-sized ConceptD 500
desktop PCs are designed for intensive tasks such as 3D animation, videos,
and complex design projects. They feature a full range of ports on the
back and front of the unit for easy accessibility. The ConceptD 100 is a
space-saving small form factor desktop ideally suited for 2D and 3D
content creators as well as small-to-medium sized design studios with
graphic design, light-duty 3D modeling, CAD, and BIM workloads.
(05/18/2022)

Acer has introduced a suite of new
laptops across its popular Swift and Spin notebook ranges. The new Swift 3
OLED laptop (SF314-71) is powered by the latest 12th Gen Intel Core
H-series processors with Intel Iris Xe graphics, PCIe Gen 4 SSDs, and up
to 16 GB of LPDDR5 memory. The laptop has also been Intel Evo verified as
meeting key experience targets such as instant wake from sleep and
offering 10 hours of real-world battery life. A 30-minute charge provides
more than four hours of battery life. The Spin 5 (SP514-51N) is a light
(1.3 kg), ultra slim (16.9 mm) convertible notebook with a 14-inch 16:10
WQXGA (2560 x 1600) touch display, low-blue light TÃœV certification, and
an 88 percent screen-to-body ratio. The Spin 5’s innovative 360-degree
hinge design with custom-designed bearings allows for smooth transitions
between various usage modes including laptop, stand, tent, or tablet
modes. The slim, convertible 14-inch Spin 3 (SP314-55/N) is a 2-in-1 FHD
touchscreen laptop that comes with a dockable Acer Active Stylus for
drawing and writing. The laptop offers speedy connectivity with Wi-Fi 6
and dual USB Type-C with Thunderbolt 4 ports for fast data transfer and
power delivery. The Spin 3 also features an HD camera with Acerâ€™s TNR
technology and comes with Acer PurifedVoice and AI-enhanced Noise
Reduction.
(05/18/2022)

Acer updated its popular Swift line of
notebooks with new models of the Swift 5 and Swift 3. Both devices come
with 12th Gen Intel Core processors, 14-inch touchscreen displays, and
all-day battery life. Weighing in at 1.2 kg (2.65 lbs), the Swift 5
(SF514-56T) is a 14.95 mm (0.59 in) thin package completed by 16 GB of
dual-channel LPDDR5 memory and up to 2 TB of PCIe Gen 4 SSD storage. With
10 hours of real-world battery life, Acer says that, in a pinch, a
30-minute charge will yield over four hours of power. The Acer Swift 3
(SF314-512) is an all-new 14-inch laptop featuring a 16:9 QHD or FHD touch
display and an FHD webcam with Acerâ€™s TNR technology for better video
calls. Both devices will be available in June with the Swift 5 starting at
USD 1,499, while the Swift 3 will start at USD 849.99.
(02/23/2022)

Acer has refreshed its lines of
Predator and Nitro gaming laptops, with new models of the Predator Triton
500 SE, Predator Helios 300, and Acer Nitro 5. All the laptops feature the
latest 12th Gen Intel Core processors and NVIDIA GeForce RTX 30 Series
Laptop GPUs, while the Acer Nitro 5 also includes AMD Ryzen 6000 Series
processor options. The Predator Triton 500 SE (PT516-52s) is a “special
edition” laptop with a 16-inch display and is just 19.9 mm (0.75 in) at
its thinnest point. Up to 2 TB of high-speed PCIe Gen4 storage offers
plenty of space for games and files. The Predator Helios 300 (PH315-55)
features a 15.6-inch QHD (2560×1440) IPS display with a 165 Hz refresh
rate. There is also an option for a 17.3-inch model (PH317-56) with an IPS
panel. Finally, the Acer Nitro 5 gaming laptop features a pair of M.2 SSD
slots (PCIe Gen 4) for extra storage, while up to 32 GB of DDR4 3200 RAM
lets players handle multiple applications at once. Combined with a QHD 165
Hz panel that has a 3 ms response time, the Nitro 5 is designed for fluid
gameplay. For further control, Killer Ethernet E2600 and Intel Killer
Wi-Fi 6 AX1650i lets players make their network prioritize game traffic
for even faster connectivity.
(01/04/2022)

Acer is adding three new Chromebooks
to its lineup with different sizes and form factors as well as enhanced
audio and video technology for both entertainment and video conferencing
use. The Chromebook Spin 513 (CP513-2H) is designed to take on-the-go for
school or work and can transform between four different usage modes, such
as tent mode for making the most of space-constrained areas like trains or
airplanes or tablet mode. The Chromebook 315 (CB315-4H/T) features a large
15.6-inch anti-glare display that can be utilized outdoors as well as in
the home, office, or school. An optional touch-screen display allows for
easy navigation, and flare-reducing camera technology along with a pair of
integrated microphones provide for clear and reliable video conferencing.
The budget-friendly and portable Chromebook 314 (CB314-3H/T) is designed
for students and families with school-age children with its compact size,
up to 10 hours of battery life, and a 14-inch FHD IPS touchscreen display.
(01/03/2022)

Acer unveiled the ConceptD 7
SpatialLabs Edition laptop (CN715-73G), bringing glasses-free stereoscopic
3D to designers and developers through a suite of optical, display, and
sensory technologies with real-time rendering capabilities. Sitting above
the screen is a set of stereo cameras that track eye positions and the
movements of a user’s eyes and head in order to display images in
stereoscopic 3D. This is achieved by projecting two slightly different
images through an optical lens that has been bonded to the display’s
panel, each refracted to a different eye. Real-time rendering technologies
allow this process to take place immediately – if a user rotates their
head, the stereoscopic 3D image will adjust as if the user was looking
around it. The laptop can also be used in tandem with an extended 2D
screen, making it possible to create or edit content on a 2D monitor and
then view any changes made in real-time in stereoscopic 3D on the
SpatialLabs device. The ConceptD 7 SpatialLabs Edition will be available
in North America in 2022; and in Europe, the Middle East, and Africa in
December, starting at EUR 3,599.00.
(10/13/2021)

Acer announced the release of its
Aspire Vero notebook, its first sustainability-focused product. Made from
recycled materials, the Aspire Vero delivers on Acer’s Earthion mission to
offer products that support a sustainable future. The Aspire Vero meets a
significant list of environmental and socially responsible criteria. It is
made from 30 percent PCR plastic in the chassis, which saves approximately
21 percent in C02 emissions and 50 percent PCR on the keyboard caps to
reduce pollution from the production of virgin plastic and landfill trash.
In addition, no paint is used on the surface of the chassis. Acer’s new
VeroSense software gives users the option of selecting a usage mode that
has been optimized for energy efficiency and battery life. “Our Vero
product line was thoughtfully designed under the umbrella of our Earthion
missionâ€™s focus on environmentally-sound production, product and
packaging,” stated Chris Chiang, Vice President of Product Marketing.
“We’re excited to deliver a product that showcases what can be done to
reduce the environmental impact of PCs.”
(10/04/2021)

Financials

Acer announced its financial results
for the third quarter of 2022 with consolidated revenues at $2.01 billion
and gross profits at $206.36 million. Operating income was $25.71 million;
and net income was $58.28 million, which was up 8.8 percent from the
previous quarter but down 37.8 percent year-on-year (YoY). For
year-to-September, Acer generated consolidated revenues of $6.68 billion,
net income of $181.04 million, which was down 32.6 percent YoY.
(11/03/2022)

Acer‘s financial results for the
second quarter of 2022 showed consolidated revenues at $2.38 billion,
gross profits were $264.0 million, operating income was $71.61 million,
and net income was $56.76 million. The company said it expects revenues
from its PC business in the second half to be lower than the previous
year. However, its strategy to build multiple business engines continues
to gain momentum, and the second quarter revenues of businesses other than
PCs and displays contributed 21.1 percent of the total revenue, compared
to 16.2 percent a year earlier. In addition, Acer said its Vero line of
eco-conscious devices and glasses-free stereoscopic 3D SpatialLabs
products have sold well worldwide.
(08/04/2022)

Financial results for Acer‘s first
quarter of 2022 had consolidated revenues reaching $2.66 billion, up 9.5
percent year-over-year. Gross profits were $300.9 million and operating
income was $98.94 million, marking a 12-year high over the same period.
Net income was $75.82 million. Business for the first quarter was affected
by the war between Russia and Ukraine, as well as supply-chain disruptions
caused by the pandemic. However, the company’s corporate strategy to build
multiple business engines continues its momentum: in March this year, Acer
e-Enabling Business (AEB) applied for listing on the Mainboard of the
Taipei Exchange, and Acer Medical transferred from the Pioneer Stock Board
to the Emerging Stock Board on the Taipei Exchange.
(05/05/2022)

Acer announced financial results for
the fourth quarter of 2021 and fiscal 2021 ended December 31. For the
fourth quarter, Acer reported consolidated revenues of $3.11 billion,
gross profits of $357.12 million, operating income of $140.76 million, and
net income of $80.64 million. For the full year of 2021, Acer reported
consolidated revenues of $11.48 billion, gross profits of $1.33 billion,
operating income of $509.76 million with 58.5 percent in year-on-year
(YoY) growth and a record high 4.4 percent margin. The net income of
$392.4 million was the highest in 11 years.
(03/16/2022)

Showing a positive quarter, Acer
released results for its 2021 third quarter showing consolidated revenues
at $2.84 billion and gross profits ending at $327.95 million. Operating
income was $121.45 million and net income $105.70 million, marking the
highest in 11 years. For year-to-September, Acer generated a net income of
$303.10 million which was twice as much as the same period in 2020. The
company says it is working hard to overcome supply chain and logistics
bottlenecks across the industry and, for the year-end holiday season, has
announced new product lineups for the gaming and creator segments,
antimicrobial solution offerings, and most importantly, the Acer Vero
series made with recycled materials.
(11/03/2021)

References

¹ “Worldwide PC Shipments Fall 15.3% in the Second Quarter of
2022 as Supply and Demand Both Waver, According to IDC” (press release).
International Data Corporation. July 11, 2022.

²“Tablet and Chromebook Shipments Continued to Decline in Q3
Amidst Ongoing Market Headwinds, According to IDC Tracker” (press
release). International Data Corporation. October 31, 2022.

³Rimol, Meghan. “Gartner Says Worldwide PC Shipments Grew
4.6% in Second Quarter of 2021.” Gartner. July 2021.

⁴ Ibid.

⁵ Acer Incorporated 2021 Annual Report. Acer. 2022.

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