Acer focusing on steady profitability
Acer’s operations are moving toward steady profitability and it will focus on maintaining the trend before looking to expand business scale, company CEO Jason Chen said at a shareholders meeting on June 23.
The company’s PC market share saw slight growth in 2014 and products such as Chromebooks and 2-in-1 devices also enjoyed good demand.
However, the company is seeing its performance impacted by several influences including specification adjustments Microsoft made to its inexpensive notebook projects, Windows 10’s launch in the second half which has caused weak PC demand in the first half, the euro’s depreciation weakening consumer purchasing in the Middle East and Russia due to drops in oil prices.
Acer is currently strictly managing costs and currency exchange processes, and focusing on selling high-margin products. The company has also been reallocating its resources to markets with potential in order to achieve the best results.
Acer’s Chromebook shipments tripled on year in 2014 and are only behind Microsoft in the US education PC market. The company will continue to push innovations for the product line and will also shift some focus to gaming product lines.
As for the Build You Own Cloud (BYOC) business, Acer has invested resources into Japan, Germany, the US and Taiwan and is looking to transform to a solution provider that is able to offer software, hardware and integrated service solutions.
In addition to consumer segment, Acer has also been strengthening its sales in the enterprise market since 2014 and is seeing growing performance.
For the future, Acer is looking to enhance its industrial design capability as well as supply chain management to have better control over product launch schedules.