Acer Inc.

Acer IPO

Acer Incorporated’s initial public offering (IPO) took place on September 18, 1996. The company was listed on the Taiwan Stock Exchange under the stock name “TWSE: 2353”.

The details of Acer’s IPO, such as the initial share price and the amount of capital raised, are not readily available.

However, the company, founded by Stan Shih, his wife Carolyn Yeh, and five others in 1976, initially started as a distributor of electronic parts and a consultant in the use of microprocessor technologies. They soon joined the emerging IBM PC compatible market and became a significant PC manufacturer.

Following its IPO, Acer faced various challenges but also saw significant growth. In the early 2000s, Acer shifted its business model from a manufacturer to a designer, marketer, and distributor of products, focusing resources on design and sales.

This strategic move allowed Acer to increase worldwide sales while simultaneously reducing its labor force. The company’s revenues rose from US$4.9 billion in 2003 to US$11.31 billion in 2006.

Acer’s growth has been significant since its IPO, and it has become one of the world’s largest PC vendors by unit sales. The company has expanded its product lineup to include a wide range of consumer electronics, software, services, and digital content, maintaining a strong presence in areas such as PCs, laptops, tablets, servers, storage devices, virtual reality devices, displays, smartphones, and peripherals.

Investors who bought Acer at its IPO price and held on to their shares may have seen substantial returns, reflecting the company’s success in the market. In the mid-2000s, Acer strived to become the world’s largest PC vendor, believing that this goal could help it achieve economy of scale and garner higher margins.

The company’s recent ventures include the announcement of the esports social platform PLANET9.gg in 2019, which aims to provide game analytics, community-organized competitions, and social experiences.

Company Overview & History

Acer Inc., founded in 1976, is a leading technology and electronics company based in Taiwan. With its headquarters in Xizhi, New Taipei, Acer has established itself as a prominent player in the global market.

The company specializes in the research, development, and production of innovative products such as desktop and laptop computers, tablets, smartphones, monitors, and other peripherals.

Over the years, Acer has built a strong reputation for delivering high-quality and reliable products to its customers. With a commitment to innovation, Acer has consistently introduced new technologies and designs, catering to the evolving needs of consumers worldwide.

The company’s focus on providing a seamless user experience and value-for-money products has contributed to its success and growth in the competitive technology industry.

Financial Performance

Year	Revenue($B)	Net Income($B)	EBITDA($B)	Operational Cash Flow($B)
2022	9.86	0.26	0.45	-0.03
2021	8.98	0.16	0.32	0.19
2020	10.40	0.36	0.56	0.21
2019	9.03	0.20	0.34	0.89

Business Model

Acer operates on a business model that combines hardware manufacturing, software development, and services. The company designs and manufactures a wide range of technology products, including personal computers, tablets, smartphones, and displays.

Acer also offers software solutions and services that enhance the user experience and provide added value to its customers.

With a customer-centric approach, Acer aims to provide products that meet the diverse needs of individuals, businesses, and institutions.

The company emphasizes affordability, performance, and user-friendly features in its product offerings. Acer’s business model also includes strategic partnerships and collaborations to expand its product portfolio and reach a wider customer base.

Market Cap Over the Years

Year	Market Cap(TWD billions)
2023	93.89
2022	70.25
2021	101.22
2020	77.32
2019	54.91
2018	58.88
2017	75.12
2016	37.39
2015	34.94
2014	485.66
2013	50.88
2012	73.23
2011	93.21
2010	256.61
2009	247.96
2008	96.88
2007	144.32
2006	152.67
2005	179.04

Risk Factors

As with any business, Acer faces certain risk factors that may impact its operations and financial performance. These risks include intense competition from other technology companies, rapid technological advancements, changes in consumer preferences, and fluctuations in global economic conditions.

Additionally, Acer’s business may be susceptible to supply chain disruptions, currency exchange rate fluctuations, and regulatory changes in the markets it operates in. The company strives to mitigate these risks through proactive measures, including product innovation, cost management, and strategic planning.

Market Opportunity

Acer operates in the highly competitive technology and electronics industry, which presents both challenges and opportunities.

The increasing demand for personal computers, laptops, and other technology devices, coupled with the growing trend of remote work and digital transformation, provides a significant market opportunity for Acer.

The company aims to capitalize on this opportunity by developing innovative products, expanding its distribution network, and strengthening its brand presence.

Competitors

Key/Fun Company Facts

Acer was founded by Stan Shih, his wife Carolyn Yeh, and a group of five others in 1976.
The company originally started as a distributor of electronic parts and a consultant in the use of microprocessor technologies.
Acer’s name was inspired by the Latin word “acer,” which means “sharp” or “eager.”
Acer is known for its commitment to sustainability and has implemented various eco-friendly initiatives to reduce its environmental impact.
The company has received numerous awards and recognition for its products, design, and corporate social responsibility efforts.