The two Chief Executive Officers of Acer Inc. explained their view of the future of the company, as well as their strategy to make it more successful, while sharing that the strategic miscalculations of Acer have led to three consecutive years of losses. Now it seems that Mr. Stan Shih, who is Acers founder and chairman, has finally settled on the man, who is about to bring the company back to life and its previous glory.
Acer Inc. is principally engaged in the research, development, design, manufacture and distribution of personal computers and notebook computers. Currently the company sells low-cost personal computers, which is the main reason why many analysts feel worried about Acers future. Some of them share their doubts that even stable management is able to help the company to recover from the difficulties and catch up on its competitors, considering the fact that the tech world is now focused on mobile devices, software and corporate customers.
Mr. Chen, who is also a Senior Sales Executive in TSMC, said: “What we need to do now is dig ourselves out of a hole. How are we going to dig ourselves out of this hole? Operational excellence. This is definitely not magic. It definitely wants focus, focus, focus.”
Shrinking market has a powerful influence on Acer Inc., and has become one of the main reasons why the company is losing market share. Investors and analysts share their concerns because it has not came up with an explanation how it is going to change its perspectives. Acer Inc. posted full-year after-tax losses both in 2011 and 2012, and it is expected to report similar losses in 2013. The company has recently announced a third-quarter loss estimated to 13.2 billion New Taiwan Dollars.
Currently, Acer Inc. is trying to package software and services like Apple Inc. and Amazon.com Inc. in order to make profit not only from the initial sale, but from the subsequent digital products sale as well. That initiative is called by the company “build Your Own Cloud”. The company also shared it is building new services on its computers and ways to link them with users other devices. Nevertheless, analysts are still pretty skeptical about the initiative, because Acer has not yet explained what its new services strategy involves.
According to Bloomberg, the current share price of Acer Inc. is 0.27% down, and its one-year return rate is 26.10% down.
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