Acer Splits to Focus on Recovery


Following the split of HP into two separate units, Acer has announced that it is taking the same path, in order to turn around its poor finances (revenue was down 20% YoY last year). The firm says that the new structure will address the ‘diverse development needs’ of IT products versus cloud services, smart devices and online businesses.

The two divisions, which will likely act independently of each other, will be known as the Core Business and New Business groups.

Acer’s Core Business group will focus on IT product development, encompassing laptop, desktop and tablet PCs and related R&D; digital displays, including monitors and projectors; server products; and corporate business planning and operations. Jerry Kao will act as president of the IT products division, while Victor Chien has been promoted to president of digital displays.

New Business will look at the integration of cloud services and platforms, as well as mobile devices. It will focus on online business; Acer’s Bring Your Own Cloud and smart products divisions (including smartphones, wearables and the IoT); and the Value Lab, for vertical and horizontal integration of technology. Maverick Shih and ST Liew will act as co-presidents of the BYOC and smart products business.

Acer will establish a wholly-owned investment holding company to manage the operation and investment of new businesses.

Analyst Comment

The aim of this change is to enable faster and more focused development, with each group responsible for a very specific sub-set of products. (TA)