Acer touts tips for success

Acer touts tips for success

Fourth-largest PC maker aims at niche markets through innovation

Acer chairman and chief executive Jason Chen with the Swift 7, dubbed the world's thinnest laptop.
Acer chairman and chief executive Jason Chen with the Swift 7, dubbed the world's thinnest laptop.

Innovation, user behaviour research, terminating unprofitable businesses and finding new growth engines are the keys to sustainable success for struggling computer firms looking to turn around, says the world's fourth-largest PC maker.

"Acer made a turnaround to reach 9% revenue growth year-on-year in the second quarter this year, and its profit after tax increased by 261%, the highest in eight years," said Jason Chen, chairman and chief executive of Acer.

Mr Chen, who became chief executive four years ago, applied the "first to market" strategy and innovative product development to make Acer stand out, rather than just selling cheaper machines.

Two years ago, Acer terminated its smartphone business and transferred staff to the new "A Corner" laboratory to research user behaviour in Taipei.

"This helps the company create new products that surprised users," Mr Chen said.

In a group interview during a visit to Thailand yesterday, Mr Chen showed a new wearable called Acer's Leap Beads, which are somewhat related to Buddhism.

The beads are engineered and developed in sucfh a way that mantras can be recorded during prayer time. The number of mantras is displayed on a smartphone app and social media.

"We create not just new products, but also new usage models to serve niche groups of users," Mr Chen said.

Acer's core PC business contributes 80% of total revenue. Acer creates patents to differentiate products, such as new materials that make devices thinner and lighter in weight, but still robust with less heat.

By the fourth quarter, Acer will introduce the world's thinnest and lightest notebooks, Swift 5 and Swift 7.

Moreover, the company will create new premium devices for hard-core gamers, such as the Predator Thronos Gaming Chair, which can integrate up to 27-inch displays on motorised steel braces for an immersive gaming experience and is priced at US$10,000 (324,458 baht).

The gaming computer market is still growing and Acer has become the leading PC gaming computer in 33 countries, including Thailand.

As of August, Acer's global revenue was up 100% year-on year gaming revenue. Acer's market share in the corporate PC market globally is 55%.

The company has increased R&D spending from less than 1% to almost 2% of total sales revenue.

"Innovation has helped Acer make its brand more premium and achieve the highest profits in 14 years," Mr Chen said.

Alan Chiang, managing director of Acer Thailand and vice-president for the Indochina region, said Acer aims to integrate all its machine visions -- such as object recognition and smart parking applications -- to support smart cities projects in Thailand.

More than 10 such projects have already been discussed.

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