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Acer Incorporated (LSE: ACID, TWSE: 2353) (traditional Chinese: 宏碁股份有限公司; pinyin: Hóngqi Gǔfèn Yǒuxiàn Gōngsī) is a Taiwan-based multinational computer technology and electronics corporation that manufactures desktop and laptop PCs, personal digital assistants (PDAs), servers, storage devices, displays, smartphones and peripherals. Acer provides e-business services for business, government, education, and home users.

Acer Group has its headquarters in Xizhi, New Taipei City.

Since the early 2000s Acer has streamlined its operations, spinning off all of its manufacturing operations, which the company considered to be of low value. Acer has implemented a new channel business model, shifting from being a manufacturer to a pure brand company that markets and distributes its products, while performing production processes via contract manufacturers.

The firm also owns the largest franchised computer retail chain in Taipei, Taiwan.

Acer was founded by Stan Shih (施振榮), his wife Carolyn Yeh, and a group of five others as Multitech in 1976, headquartered in Hsinchu City, Taiwan.

It 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 over time becoming a significant PC manufacturer. The company was renamed Acer in 1987.

In 1993, Acer posted record profits of $75 million; 43 percent of that year’s net was generated by the DRAM joint venture, considered “the most efficient in the DRAM industry” by some observers. Total sales grew to $3.2 billion in 1994, and net income increased to $205 million, as Acer America turned its first annual profit in the 1990s. From 1994 to 1995, Acer advanced from 14th to ninth among the world’s largest computer manufacturers, surpassing Hewlett-Packard, Dell, and Toshiba.

In 1995, the Aspire PC was unveiled. In 1996, Acer expanded into consumer electronics, introducing many new, inexpensive videodisc players, video telephones, and other devices to boost global market share,and in 1997extended its laptop efforts by buying Texas Instruments’ mobile PC division.

Spinning-off

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. Two years later that corporate restructuring did not appear to have made a significant impact on the company overall, and stock prices were falling. Shih restructured again. To dispel complaints from clients that Acer competed with its own products and to alleviate the competitive nature of the branded sales vs. contract manufacturing businesses, Shih spun off the contract business, renaming it Wistron Corporation. The restructuring resulted in two primary units: brand name sales and contract manufacturing. The restructuring also resulted in Acer breaking off several of its smaller operations, including semiconductor design, consumer electronics, and liquid-crystal displays.

Early signs indicated that the spinoff strategy had worked well, especially in Europe, where Acer became a popular PC brand. In 2003, company sales increased 48 percent to $4.6 billion, and helped Acer surpass Japan’s Toshiba and NEC, making it the world’s fifth largest maker of PCs.

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

Acer’s North American market share has slipped over the past few years, while in contrast, the company’s European market share has risen.

On 27 August 2007, Acer announced plans to acquire its US-based rival Gateway Inc. for US$710 million. Acer’s chairman, J.T. Wang, stated that the acquisition “completes Acer’s global footprint, by strengthening our United States presence.” Included in this acquisition was the eMachines brand.

In January 2008, Acer announced that it had acquired a controlling interest of 75% of Packard Bell.

In 2009, Acer acquired: E-TEN and 29.9% of Olidata.

In October 2009, Acer passed Dell as the world’s number 2 PC maker.

In August 2010, Acer and Founder Technology signed a memorandum of mutual understanding to strengthen their long term PC business cooperation.

April 29, 2010^[11]

• Acer announced revenue in Q1 rose 36 percent year-on-year to NT$162.1 billion (US$5.2 billion) and its net profit increased 63 percent to 3.29 billion New Taiwan dollars (US$104.7 million); 27 percent of revenue comes from the U.S.
• Gianfranco Lanci announced that Acer will launch 4 new smartphones by Q32010, and a series of “Internet Devices” by the end of May which will run version 4.0 of its Shell user interface.
• According to Gartner and IDC, Acer now ranks #1 worldwide in notebook shipments.

Operations

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. In September 1990, Acer acquired Altos Computer Systems, one of the top manufacturers of multi-user and networked Unix computer systems for commercial markets. In February 1997, Acer acquired Texas Instruments Mobile Computing business, including the award-winning TravelMate and Extensa notebook lines, making Acer the fourth-leading notebook manufacturer in the United States. In 2007 Acer acquired PC maker Gateway. The acquisitions marked Acer’s return to the US consumer market that it abandoned in 1999 after losing $45m struggling to build brand awareness. Acer America’s Canadian office, in Mississauga, Ontario, handles repair of Acer, Gateway, and E-Machine Notebooks and Desktop PCs for Eastern Canada. Acer has several facilities in Temple, Texas including a repair facility, a parts warehouse, and a call center. In the words of its Chief Executive, J.T. Wang, “Building a brand is very different in the US. The investment at the initial stage has to be very big—otherwise there is almost no impact”.

Australia

The Australian subsidiary of Acer is Acer Computer Australia (ACA). The subsidiary was established in 1990, and is currently Australia’s third largest personal computer vendor, behind Hewlett-Packard Australia and Dell Australia and New Zealand. Acer Computer Australia has Australia’s highest overall market share in notebook PC and tablet PC sales. The company is also Australia’s leading PC vendor in government and education markets. Acer Computer Australia has 480 employees as of 2006.

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 headquarters are in Bangalore, India.

Products

Acer Aspire 8920G Notebook

Acer Aspire 3610 Notebook

Acer Aspire 5520 Notebook

Acer Aspire 4520 Notebook

Acer Aspire One

Consumer Desktops

• Acer Aspire Desktop series
• Acer Aspire Predator series

Business Desktops

• Acer Veriton series

Consumer Notebooks

• Acer Aspire Notebook series
• Acer Aspire Timeline series
• Acer Ferrari products series
• Acer Iconia

Business Notebooks

• Acer TravelMate series
• Acer Extensa series

Tablet

• Acer Tablet series

Netbook

• Acer Aspire One
• Ferrari one

Nettop

• AspireRevo

Mobile phones

• Acer Tempo series
• Acer Liquid
• Acer beTouch
• Acer neoTouch
• Acer Stream
• Acer E110

Home Network Solution

• Acer Clear.fi

Computer displays

• G Series
• P Series
• H Series
• X Series
• B Series
• V Series
• S Series
• T Series
• D Series
• MO Monitor TV series

Projectors

• Professional Series
• Home Series
• Travel Series
• Value Series

Television

• AT Series

Servers and storage

• Acer server F1 series
• Tower series: T110 F1, T115 F1, T150 F1, T310 F1, T350 F1;
• Rack series: R160 F1, R180 F1, R320 F1, R360 F1, R380 F1, R385 F1, R585 F1;
• Blade series: B2x285 F1, B2x280 F1, B460 F1;
• Gemini series: B1170 F1, B2170 F1, B2170t, B2175 F1
• Home Server Series: H340, H341, H342, Altos Easystore M2
• Acer storage series
• N500 F1, N1600 F1, HNAS3080, GS2040, AMS2100, AMS2300

Other (discontinued devices)

• Digital cameras
• Personal digital assistants
• Automotive navigation systems
• Acer PICA

Brands

• Acer
• eMachines
• Gateway
• Packard Bell
• E-TEN