Acer Inc. Explained

Acer Inc.
Native Name:宏碁股份有限公司
Native Name Lang:zh-hant
Former Name:Multitech (1976–1987)
Romanized Name:Hóngqí Gǔfèn Yǒuxiàn Gōngsī
Type:Public
Industry:Electronics
Founders:Stan Shih
Carolyn Yeh
Lemuel Girma
Hq Location City:Xizhi District, New Taipei
Hq Location Country:Taiwan
Area Served:Worldwide
Key People:
Revenue: NT$277.1 billion
Revenue Year:2020
Operating Income: NT$8.9 billion
Income Year:2020
Net Income: NT$6.1 billion
Net Income Year:2020
Assets: NT$183.9 billion
Assets Year:2020
Equity: NT$61.9 billion
Equity Year:2020
Num Employees:7,813[1]
Num Employees Year:2023
Subsid:Gateway, Inc.
Packard Bell
eMachines (now-defunct)
Escom (now-defunct)
Footnotes:[2] [3]
Acer Inc.
P:Hóngqí Gǔfèn Yǒuxiàn Gōngsī
Poj:Hông-kî Kó͘-hūn Iú-hān Kong-si
W:Hungch'i Kufên Yuhsien Kungssǔ
L:Hongqi Corporation Ltd

Acer Inc. (;) is a Taiwanese multinational company that produces computer hardware and electronics, headquartered in Xizhi District, New Taipei City, Taiwan. Its products include desktop PCs, laptop PCs (clamshells, 2-in-1s, convertibles and Chromebooks), tablets, servers, storage devices, virtual reality devices, displays, smartphones, televisions and peripherals, as well as gaming PCs and accessories under its Predator brand. Acer is the world's sixth-largest personal computer vendor by unit sales.[4]

In the early 2000s, Acer implemented a new business model, shifting from a manufacturer to a designer, marketer, and distributor of products, while performing production processes via contract manufacturers.[5] Currently, in addition to its core IT products business, Acer also has a new business entity that focuses on the integration of cloud services and platforms, and the development of smartphones and wearable devices with value-added IoT applications.[6]

History

Acer was founded as Multitech in 1976 by Stan Shih, his wife Carolyn Yeh, and five others in Hsinchu City, Taiwan. The company began with eleven employees and US$25,000 in capital. Initially, it was primarily a distributor of electronic parts and a consultant in the use of microprocessor technologies. It produced the Micro-Professor MPF-I training kit, then two Apple II clones–the Microprofessor II and III–before joining the emerging IBM PC compatible market and becoming a significant PC manufacturer. The company was renamed Acer in 1987.

In 1998, Acer reorganized into five groups: Acer International Service Group, Acer Sertek Service Group, Acer Semiconductor Group, Acer Information Products Group, and Acer Peripherals Group. To dispel complaints from clients that Acer competed with its own products and to alleviate the competitive nature of the branded sales versus contract manufacturing businesses, the company spun off the contract business in 2000, renaming it Wistron Corporation. The restructuring resulted in two primary units: brand name sales and contract manufacturing. In 2001, the company sold its manufacturing units BenQ and Wistron in order to focus resources on design and sales.

Acer increased worldwide sales while simultaneously reducing its labor force by identifying and using marketing strategies that best utilized their existing distribution channels. In January 2005 became the president. By 2005, Acer employed a scant 7,800 people worldwide. Revenues rose from US$4.9 billion in 2003[7] to US$11.31 billion in 2006.[8]

Acer's North American market shares slipped in the early 2000s, while its European market share rose.[9]

In the mid-2000s, consumer notebooks were almost the sole growth drivers for the PC industry, and Acer's exceptionally low overheads and dedication to the channel made it one of the main beneficiaries of this trend.[10] Acer grew quickly in Europe in part by embracing the use of more traditional distribution channels targeting retail consumers when some rivals were pursuing online sales and business customers. In 2007, Acer bought Gateway in the United States and Packard Bell in Europe, and became the third-largest provider of computers and the second largest for notebooks, achieving significant improvement in profitability. Acer has strived to become the world's largest PC vendor in the belief that the goal can help it achieve economy of scale and garner higher margin.[11] However, such a reliance on the high-volume, low-value PC market made Acer exposed when buying habits changed.

In September 2018, Acer spun-off its smart gadget unit GadgeTek Inc., which produces Leap Beads, smart prayer beads that track mantras and footsteps.[12] [13]

In 2019, Acer announced the esports social platform PLANET9,[14] which aims to provide game analytics, community-organized competitions, and social experiences.[15]

In November 2013, chairman and CEO J.T. Wang and president Jim Wong both resigned due to the company's poor financial performance.[16] [17] Wang had been reportedly due to leave Acer at the end of the year and was supposed to have been succeeded by Wong.[18] Acer co-founder Stan Shih took over as board chairman and interim president while the company searched for a new president. On December 23, 2013, Acer named Jason Chen, then the vice president of worldwide sales and marketing at Taiwan Semiconductor Manufacturing,[19] as its new president and CEO, effective January 1, 2014.[20]

Corporate affairs

Business trends

The key trends for Acer are (as of the financial year ending December 31):[21]

Revenue (TWD bn)Net profit (TWD bn)Employees[22]
20192342.67,240
20202776.07,467
202131910.87,713
20222755.0
20232414.97,813[23]

Acquisitions and joint ventures

Operations

As of September 2022, Acer has over 7,713 employees worldwide, operating in 40 countries/territories.[40]

Australia

Acer Computer Australia (ACA) was established in 1990, and is currently Australia's third-largest personal computer vendor, behind Hewlett-Packard Australia and Dell Australia and New Zealand. ACA has Australia's highest overall market share in notebook PC and tablet PC sales. The company is also Australia's leading PC vendor in the government and education markets. it has over 480 employees.

The company repairs, assembles and manufacturers laptops and desktops in Sydney.[41] [42]

Europe

Acer's EMEA headquarters are located in Lugano, Switzerland. From the late 1990s to mid-2000s, Acer had computer factories in Europe. The business area was the whole EMEA. In the Netherlands under the name of Acer IMS bv, there were two factories: Acer laptop factory in Den Bosch and Acer and IBM desktop factory in Tilburg.[43] [44] Acer also had facilities in Germany under the name of IMS in Ahrensburg and Hamburg. Acer computers are also assembled in Mingachevir, Azerbaijan.

India

Acer's subsidiary in India is Acer India (Pvt) Limited, and was incorporated as a wholly-owned subsidiary of Acer Computer International, Ltd. in 1999. It is a notable vendor in key segments such as education, desktop computers, and low profile notebooks for education. The head office is in Bengaluru, Karnataka. India rose to become Acer's second-largest worldwide market in 2023. In an effort to diversify from the computer hardware market, a new firm called AcerPure was established to sell consumer products in India.[45]

Indonesia

PT Acer Indonesia is a wholly-owned subsidiary of Acer and distributes its products through their main distributor PT Dragon Computer & Communication. Acer is currently the second-largest computer vendor in Indonesia. In the first quarter of 2016, Acer recorded >81% market share in Windows tablet in Indonesia.

North America

Acer America Corporation, headquartered in San Jose, California, is a member of the Acer Group. Acer's R&D, engineering, manufacturing, and marketing operations in the United States and Canada are handled by Acer America. The U.S. headquarters was opened with a staff of three in 1985, as Multitech Electronics USA, in Mountain View, California. In 1986, the U.S. headquarters were moved to San Jose, California.

Notable product lines

Brands

Corporate social responsibility

See also: Corporate social responsibility. In 2005, Acer published its first environmental report, for which the company used the Global Reporting Initiative (GRI) guidelines. All of Acer's tier-one suppliers have acquired ISO 14001 certification.[46]

In November 2012, Acer was ranked 4th place out of 15 in Greenpeace's re-launched Guide to Greener Electronics, with a score of 5.1 points out of 10. The Guide ranks electronics makers according to their policies and practices to reduce their impact on the climate, produce greener products, and make their operations more sustainable.[47]

Greenpeace criticized the company for not setting out targets to reduce greenhouse gas (GHG) emissions as intended in 2010 and for not providing external verification for the GHG emissions it reports for its operations and business travel. It also scored badly on the products criteria receiving no points on product lifecycle while Greenpeace noted that a higher percentage of its products need to meet or exceed Energy Star standards in order for it to score more points.[47]

It received some praise for launching new products which are free from Polyvinyl chloride plastic (PVC) and brominated flame retardants (BFRs) and the company informed Greenpeace that the majority of its products will be PVC/BFR free in the near future. Acer also scored well on chemical management for lobbying for restrictions on organo-halogens and was commended for reporting on GHG emissions from its first-tier suppliers and investigating its second tier.[47]

In its 2012 report on progress relating to conflict minerals, the Enough Project rated Acer the seventh highest of 24 consumer electronics companies.[48]

Acer has been listed on the DJSI's Emerging Markets Index since 2014 and on MSCI's Global Sustainability Indexes in 2015–2016.[49]

Sponsorships

Controversies

During the 2022 Russian invasion of Ukraine, Acer refused to join the international community and withdraw from the Russian market. Research from Yale University from March 28, 2022, identifying how companies were reacting to Russia's aggression identified Acer in the worst category "Digging in" meaning Defying Demands for Exit: companies defying demands for exit/reduction of activities.[55] Acer subsequently reversed its decision and suspended business in Russia.[56] Despite stating that it would suspend business in Russia, a Reuters investigation of customs data found that Acer supplied at least $70.4 million worth of computer hardware to Russia between April 8, 2022 and March 31, 2023, and it was supplied to Russia both through Acer's wholly-owned Swiss registered subsidiary. Since the shipments occurred outside Taiwan, they did not violate Taiwanese sanctions against Russia.[57]

See also

Notes and References

  1. Web site: Staff Structure . Acer . August 19, 2024.
  2. Web site: 2020 Acer Annual Report. 2022-02-02.
  3. News: Forbes Global 2000 #1131: Acer . April 2016 . . 14 July 2016.
  4. Web site: January 11, 2024 . Gartner Says Worldwide PC Shipments Increased 0.3% in Fourth Quarter of 2023 but Declined 14.8% for the Year . January 11, 2024 . Gartner.
  5. [Centre for Research on Multinational Corporations]
  6. Web site: Acer Separates New and Core Businesses to Accelerate Corporate Transformation Business Wire. businesswire.com. 2016-12-19. 24 March 2016.
  7. Web site: Gianfranco Lanci is appointed President of Acer Inc., effective January 2005 . Acer . 1 September 2004 . 27 April 2007 . https://web.archive.org/web/20070403125915/http://www.acer.co.in/press/New_President.pdf . 3 April 2007.
  8. Web site: Sutori. 2021-02-16. sutori.com. en.
  9. Web site: PC market surged in 2005, will settle in 2006 . cnet . 18 January 2006 . 7 July 2007 . https://web.archive.org/web/20140714172335/http://news.cnet.com/PC%2Bmarket%2Bsurged%2Bin%2B2005%2C%2Bwill%2Bsettle%2Bin%2B2006/2100-1003_3-6028454.html . 14 July 2014 . live .
  10. Web site: Acer boss throws in the towel – Corporate – News – HEXUS.net. 31 March 2011 . 29 June 2016.
  11. Web site: Acer Should Overhaul Its Operation: Stan Shih | Taiwan Industry Updates. https://web.archive.org/web/20130509093115/http://www.cens.com/cens/html/en/news/news_inner_35793.html. dead. 9 May 2013. CENS.com.
  12. Web site: Smith . Sherri L. . 11 June 2018 . Acer Leap Beads Bridges Gap Between Spirituality and Tech . tomsguide.com.
  13. Web site: About GadgeTek Inc.. 23 October 2020. 2 February 2021. https://web.archive.org/web/20210202032614/https://www.gti.tech/en/brand/gadgetek-inc/. dead.
  14. Web site: Acer Expands Closed Beta for Planet9, a Next-Gen Esports Platform - CTIMES News . 2024-08-16 . en.ctimes.com.tw . en.
  15. Web site: Acer Expands Closed Beta for Planet9, a Next-Gen Esports Platform. 2021-01-04. news.acer.com. 22 November 2019 . en-US.
  16. Web site: Summers . Nick . 2013-11-05 . Acer CEO and Chairman JT Wang Resigns . 2024-07-27 . TNW Insider . en.
  17. Web site: Acer's financial woes force exit of CEO, president . 2024-07-27 . CNET . en.
  18. Web site: Mishkin . Sarah . 5 November 2013 . Acer chairman and CEO steps down . 2024-07-27 . Financial Times.
  19. Web site: Acer names semiconductor veteran as new CEO . 2024-07-27 . PCWorld . en.
  20. Web site: Acer names semiconductor veteran as new CEO. PC World. 24 December 2013. 23 December 2013.
  21. Web site: Acer Income Statement . 23 July 2024 . WSJ.
  22. Web site: Acer's Employee Headcount . 23 July 2024 . globaldata.com.
  23. Web site: Staff Employment . 23 July 2024 . Acer.
  24. Web site: Lazzareschi . Carla . 1989-12-12 . Taiwan Gains Foothold in U.S. Computer Field With Purchase of Wyse : Technology: The $262-million deal is Taiwan's largest in a growing string of U.S. acquisitions. . 2024-07-27 . Los Angeles Times . en-US.
  25. Web site: Archives . L. A. Times . 1990-07-06 . Taiwan Firm to Acquire Altos Computer: Acer... . 2024-07-27 . Los Angeles Times . en-US.
  26. PC Dealer and Computer Reseller, Issue 795, 24 Nov. 1993
  27. Web site: Taiwan's Acer to buy PC maker Gateway – World business . NBC News. 27 August 2007. 7 April 2009.
  28. News: Acer Buys 75 Percent of Packard Bell making it the 2nd largest computer maker in the world . The Washington Post. 7 April 2009 . 31 January 2008 . https://web.archive.org/web/20110628212928/http://www.washingtonpost.com/wp-dyn/content/article/2008/01/31/AR2008013101390.html . 28 June 2011 . live.
  29. Web site: A lot of Nintendo source code design information leaked! Contains Wii host source code – ElectroDealPro. 2020-07-30. en-US. 3 October 2020. https://web.archive.org/web/20201003072021/https://electrodealpro.com/a-lot-of-nintendo-source-code-design-information-leaked-contains-wii-host-source-code/. dead.
  30. News: Acer to buy cloud computing firm iGware. 29 June 2016.
  31. Web site: Reisinger. Don. Acer to acquire cloud-service provider iGware. 2020-07-30. CNET. en.
  32. News: Acer acquires GPS firm Xplova Economics FOCUS TAIWAN - CNA ENGLISH NEWS. 2016-12-28.
  33. Web site: Acer invests in robotics start-up company Jibo – Taipei Times. www.taipeitimes.com. 5 September 2015 . 2016-12-29.
  34. News: grandPad® and Acer Announce Strategic Partnership. PRWeb. 2016-12-28.
  35. News: Acer and Starbreeze Boards Approve Definitive Agreement to form Joint Venture for StarVR – Starbreeze. 2016-06-25. Starbreeze. en-GB. 2016-12-28. 24 July 2020. https://web.archive.org/web/20200724225743/https://www.starbreeze.com/2016/06/acer-starbreeze-boards-approve-definitive-agreement-form-joint-venture-starvr/. dead.
  36. Web site: Acer reveals 'Pawbo' pet accessories. Engadget. 2016-12-28.
  37. Web site: AOPEN® & ACER® Gear Up to Expand Global Footprint. www.aopen.com. 2018-01-04. 26 July 2020. https://web.archive.org/web/20200726143401/https://www.aopen.com/us/aopen%C2%AE-acer%C2%AE-gear-up-to-expand-global-footprint. dead.
  38. News: Starbreeze cedes majority control of StarVR to Acer . GamesIndustry.biz . June 1, 2018 . en . https://web.archive.org/web/20181106171938/https://www.gamesindustry.biz/articles/2017-10-24-starbreeze-cedes-majority-control-of-starvr-to-acer . November 6, 2018 . live.
  39. Web site: Acer annual report 2021 .
  40. Web site: ACER CSR . 25 September 2022 . acer-group.com.
  41. Web site: Nocookies . The Australian . 2018-09-08.
  42. Web site: Inside Acer's Australian computer facility. CRN Australia. 13 June 2018.
  43. Web site: Duitse PC-productie Acer naar Tilburg . 2023-12-08 . www.computable.nl . NL.
  44. Article in Dutch about the factory in Tilburg Web site: Acer centraliseert productie in Tilburg | Kanaal | Computable . 2013-11-06 . dead . https://web.archive.org/web/20131110213022/http://www.computable.nl/artikel/achtergrond/kanaal/1302793/1277452/acer-centraliseert-productie-in-tilburg.html . 10 November 2013.
  45. News: Mallick . Subhrojit . 2024-02-26 . Acer to make home appliances in India, export too: MD Harish Kohli . 2024-02-27 . The Economic Times . 0013-0389.
  46. ISO 14001 was released in 1996 with the intent that companies manage all of the activities, products, and services that can significantly impact the environment
  47. Web site: Guide to Greener Electronics – Greenpeace International. 16 November 2011.
  48. Web site: Taking Conflict Out of Consumer Gadgets: Company Rankings on Conflict Minerals 2012 . 2012-08-17 . Lezhnev . Sasha . Alex Hellmuth . Aug 2012 . Enough Project.
  49. Web site: Acer Listed on Global Sustainability Indices: 2016 DJSI and MSCI . 22 February 2021 . Nov 2016.
  50. Web site: Sport and technology: the true spirit of excellence. www.acer-group.com. Acer Inc.. 3 June 2014. 6 December 2007. https://web.archive.org/web/20141110004153/http://www.acer-group.com/public/News/2007/20071206-01.htm. 10 November 2014. dead.
  51. Web site: About Acer – News Release. https://web.archive.org/web/20070219200301/http://global.acer.com/about/news.asp?id=6745. dead. 19 February 2007.
  52. Web site: Packard Bell sponsor of Yamaha Factory Racing Team Changeover of sponsorship from Acer. www.acer-group.com. Acer Inc.. 3 June 2014. 2 February 2009. https://web.archive.org/web/20141109182958/http://www.acer-group.com/public/News/2009/20090202.htm. 9 November 2014. dead.
  53. News: Lee. Sheena. 2007-12-06. Taiwan's Acer to become Olympic sponsor. en. Reuters. 2020-10-05.
  54. Web site: Ubisoft Kicks off a Revamped Tom Clancy's Rainbow Six Pro League Season X With All-New Acer Predator Sponsorship. 2 February 2021. 18 June 2019.
  55. Web site: . Over 450 Companies Have Withdrawn from Russia—But Some Remain . . 28 March 2022.
  56. Web site: Snider . Shane . 2022-04-08 . Taiwan PC Maker Acer Suspends Russia Business . 2022-09-11 . CRN . en.
  57. Web site: Exclusive: Taiwan's Acer ships computer hardware to Russia after saying it would suspend business. Filipp. Lebedev. Gleb. Stolyarov. Reuters. 2023-06-29. July 28, 2023.

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