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Acer profits plunge – firm will spilt core and new businesses

by Mark Tyson on 25 March 2016, 11:31

Tags: Acer (TPE:2353)

Quick Link: HEXUS.net/qacznt

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Acer has just published its FY2015 financials and they are not very appetising reading for investors. The computer maker's profits, at TW$603.7 million (US$18.5 million) for the year were down by 66 per cent from a year earlier. In the wake of such disappointing results something has to be done – or at least seen to be done. So Acer has announced a corporate reshuffle and a significant "overall company transformation" with a new business structure.

Acer's transformation will largely come from the business being split into two; a part under the Core Business umbrella, another separately under the New Business umbrella. Please refer to the table below to see which kinds of business activity fall under which division.

Core Business – for IT product development

New Business – for the integration of cloud services and platforms, and the development of smartphones and wearable devices with value-added IoT applications

  • IT Products Business for notebooks, desktops and tablet PCs, and its R&D - led by Jerry Kao, president
  • Digital Display Business including monitors and projectors – led by Victor Chien who is promoted as president
  • Server Products Business – led by Evis Lin, general manager
  • Corporate Business Planning and Operations – led by Tiffany Huang, president

 

  • eBusiness Business – led by Ben Wan, president
  • BYOC and Smart Products Business – co-headed by presidents Maverick Shih and ST Liew
  • Value Lab for the vertical and horizontal integration of technology for new businesses – led by Dr. RC Chang, chief technology officer

 

To manage the overall operation and provide transparency for investment and new business performance, Acer will establish a wholly-owned investment holding company. There was no mention concerning jobs at the company except for the top-management reshuffle information.

An analyst from Taiwan's Fubon Financial Holding Co said that the changes weren't going to have much impact on Acer's fortunes. "None of this affects our negative view on the company's future, given the end of the PC and slowing smartphone growth, and the lack of any significant server business for Acer," it bleakly summed up.

Acer was founded in 1976 and this 'top 5' PC company is currently 'celebrating' its 40th anniversary.



HEXUS Forums :: 6 Comments

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well truth being told, acer products are just cheap products. They got a good standing with mass selling because they had good specs and low price, but the overall quality was always “you get what you pay for”.
Not sure how much faith to put in someones prediction when they make a claim of “the end of the PC”, it's like how people (iirc) used to say how cars and lorries would be the end of railways.
I quite like Acer products, I have 2 monitors and a netbook.

I will say my main draw has been price/performance ratios have been good, maybe not top end but excellent value.

IE, my UHD monitor cost £200, it doesn't have freesync or g-sync and only goes to 60hz, but its got excellent colour reproduction (IPS panel) which is more important to me.
I have the same experience. They offer stuff that is of high specs, but poor build quality, which doesn't matter for those who are careful. I am personally typing this on an acer 1440p monitor now :)
I actually found that acer predator monitor to be pretty appealing, maybe they should make some lower priced 3440x1440 monitors that aren't so extreme. personally that's my next-in-line purchase!
Corky34
Not sure how much faith to put in someones prediction when they make a claim of “the end of the PC”, it's like how people (iirc) used to say how cars and lorries would be the end of railways.

Well they pretty much were.. but only after certain pieces of legislation. There's a railroad next to my house (in the UK) which is used once or twice a week. Pretty pathetic compared to possible loads.

I think one of the main points is that a lot of HGV's on long routes should be done via freight train instead to decrease traffic. Using HGV's for from depot to store/other local depot only. It makes much more sense and is probably more efficient if done correctly (which it wouldn't be).

For comparison, the next step in this logistical anti-logic would be to put all freight in small cars and rarely use HGVs. Chaos on the roads!

But yeah I doubt the PC is going anywhere just yet. Besides, home built gaming PC market is still growing.