Changing times for Acer

A new autonomous company, called Wistron Electronics, has been created that will take over all of Acer’s current manufacturing and R&D.

  • E-Mail
By  Greg Wilson Published  October 18, 2001

Today’s Gitex is your last chance to see Acer in its current guise as one of the largest PC manufacturers in the world.

A new autonomous company, called Wistron Electronics, has been created that will take over all of Acer’s current manufacturing and R&D. Wistron will then have to compete for Acer’s business along with other suppliers.

“Acer will outsource its manufacturing to Wistron and other suppliers. This will give Acer more flexibility in terms of products and pricing,” confirms Eric Tien, general manager for Acer Middle East.

Final assembly of Acer machines will also be wound down at the company’s Jebel Ali facility. This assembly will be consolidated into fewer global plants in order to increase efficiency and drive cost out of the supply chain.

The search for greater efficiency comes at a time when a global slowdown in IT spending is affecting every vendor. “Everybody is suffering. Everybody is in survival mode.

Everybody is doing everything they can to make sure they are still alive when spending returns to normal,” explains Tien.

For Acer, that has meant divesting less profitable elements of its business. “Acer Group is becoming much more purified,” says Tien.
Without a manufacturing business, Acer will become much more of a customer-focused services company. The small-to-medium sized business market is ripe for this type of sale, says Tien.

“These people no longer want just hardware, they want solutions. What they struggle to find at the moment, and what Acer will provide, are solutions that improve their business process, right out of the box,” he adds. Acer’s new strategy will take time to execute, however.

The Taiwanese giant needs to forge relationships with key partners in order to round out the portfolio of hardware and software it takes to market. It also needs a more consultative workforce, which can identify and address customer needs.

GO TO STAND: B3-1

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code