Acer Will Focus On Margins Rather Than Market Share

The Taiwan-based PC and smartphone manufacturer Acer will much rather focus on "steady profitability" before looking to expand to newer markets and diversify its product portfolio, according to the CEO of the company, Mr. Jason Chen. Mr. Chen was speaking at a shareholders' meeting held in Taipei City on Tuesday, where the company declared a net profit margin of over 24% for FY2015. Mr. Chen also informed that the company is focusing on high-growth markets and high-margin products rather than looking for volume growth for the time being. The year saw a significant growth in the company's Chromebook business, which tripled from the numbers recorded the previous year. Acer also saw increased demand for its 2-in-1 computers, resulting in the company's overall market share in personal computers growing ever so slightly.

The company has just recovered from a tumultuous few years, when, amidst mounting losses and piling debts, there were talks of the company being on the block to be acquired by rival brands. It was thought that Acer had been approached by three different companies for acquisition early last year, but the company was eventually able to turn around and get back to black. While Acer has declared a profit, and a growing market share, its PC business was negatively affected by several factors, including the imminent release of Windows 10 from Microsoft, which resulted in people postponing their purchase for the second half of the year. The depreciation of Euro against the New Taiwan Dollar, and weak consumer sentiment in the Middle East and Russia amidst the drop in crude prices have also reportedly impacted the company's topline badly.

As for Acer's strategy going forward, the company is looking beyond the consumer market and is said to have invested in Japan, Germany, the US and Taiwan to expand its fledgling Build You Own Cloud (BYOC) business, as part of its effort to reposition itself from a hardware vendor to a complete solutions provider for its enterprise clients. Acer is putting increased emphasis on the enterprise market and has already reported growth from the segment. The company believes that improving its industrial design capability and refining its supply chain management in the future, holds the key to timely introduction of new, relevant products and technologies to the market.


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Kishalaya Kundu

Senior Staff Writer
I've always been a tech buff and have been building my own PCs since as far back as I can remember. My first computer was a home-built desktop running MS-DOS on which I learnt to program in GW-BASIC and my interests apart from technology include automobiles and sports.
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