Taiwan's Acer looks to Internet trading

Jan 07, 2014

Taiwanese computer maker Acer said Tuesday it has made its first major investment since overhauling its top management late last year, acquiring a 15.6 percent stake in a PChome subsidiary.

While declining to disclose the value of the deal, the statement said the market capital of PChomePay, the payment business of the leading Internet trade group, had increased to TW$450 million ($14.9 million) from TW$380 million as a result.

"Under the ICT industry's paradigm shift Acer is going beyond hardware-based thinking; the investment in e-commerce and our self-built cloud (Build Your Own Cloud, 'BYOC') is our important deployment of 'hardware + software + services' transformation," Acer Chairman and company founder Stan Shih said.

Acer termed the deal as part of the "corporate transformation" under way, led by the new management headed by Shih.

The board in November pulled 69-year-old Shih out of retirement to name him chairman and interim president, replacing two top executives who quit in the space of less than a month over the firm's poor performance.

Then Acer appointed Jason Chen, a former senior executive of Taiwan Semiconductor Manufacturing Co, as both CEO and president, effective from January 1.

Shih has high hopes of Chen, describing him as the "ideal executive to lead our transformation".

Acer posted a worse-than-expected net loss of Tw$13.1 billion ($442.2 million) in the three months to September.

The company has said this was due to a rise in inventory levels and one-time compensation payments related to longstanding litigation.

But it has forecast that shipments of Acer's notebooks, tablet PCs and Chromebooks will fall 10 percent in the fourth quarter compared to the third quarter.

In the face of the tough outlook, Acer has set up a business restructuring group led by Shih and co-founder George Huang.

Shih founded Acer in 1976 and built it into the world's second largest PC maker in its heyday, and one of the best known Taiwanese brands internationally, before he retired in 2004.

But Acer's fortunes worsened in recent years. In 2011 it lost Tw$6.8 billion in the second quarter—compared to a profit of Tw$3.59 billion in the same period the previous year—as sales were hit by competition from Apple's iPad.

The company has cut several hundred jobs in Europe, the Middle East and Africa in recent years to reduce operating expenses. It envisages a seven percent cut in its global workforce in 2014.

Explore further: Taiwan's Acer names new CEO after 3Q losses

add to favorites email to friend print save as pdf

Related Stories

Taiwan's Acer names new CEO after 3Q losses

Dec 23, 2013

Taiwan's struggling personal computer maker Acer Monday named a new chief executive officer following losses of hundreds of millions of dollars in the third quarter.

Founder of Taiwan's Acer returns as chairman

Nov 21, 2013

Taiwan's struggling personal computer maker Acer announced Thursday that it has named its founder Stan Shih as the new chairman and interim corporate president.

Founder faces tough battle on return to Taiwan's Acer

Nov 22, 2013

The founder of Taiwanese personal computer maker Acer has returned as its head to help turn around the firm's fortunes but analysts warn it has a tough fight in its attempts to expand in the mobile device market.

Taiwan Acer CEO resigns over 3Q widening loss

Nov 05, 2013

J. T. Wang resigned as chairman and CEO of Acer Tuesday as the Taiwanese personal computer maker reported a net third-quarter loss of Tw$13.1 billion ($442.2 million).

Taiwan's Acer swings to profit in Q1

May 07, 2013

Taiwan's leading personal computer maker Acer said Tuesday it swung to profit in the first quarter of 2013 thanks to income from foreign exchange and stock sales.

Recommended for you

Ticketfly buying WillCall for on-premise data

17 hours ago

Ticketfly Inc., a San Francisco-based technology company among several posing a challenge to Ticketmaster, is acquiring WillCall Inc., a crosstown rival that turns your smartphone into a mobile wallet at live events.

HP revenue inches up after years of decline

Aug 20, 2014

Hewlett-Packard on Wednesday reported that its quarterly revenue rose for the first time in three years, nudged by improved computer sales everywhere except Russia and China.

Restaurants experimenting with pay-in-advance tickets

Aug 20, 2014

With restaurant patrons increasingly jumping on the Internet to make reservations, some high-end eateries here and across the country are adding a new tech wrinkle: having their clientele pay for their meal in advance using ...

Chip maker Infineon to buy California firm for $3B (Update)

Aug 20, 2014

German chip maker Infineon Technologies AG says it has agreed to pay $3 billion in cash for California-based semiconductor firm International Rectifier, which produces power-management components used in everything from cars ...

User comments : 0