Word: acer
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Dates: during 2000-2009
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When Stan Shih founded computer maker Acer in 1976, he dreamed of creating a globally recognized brand. It was an ambitious vision for a start-up founded in a small Taipei apartment, but Shih, who's known as the father of Taiwan's formidable technology industry, eventually got his wish. Acer now ranks behind only industry giant Hewlett-Packard in the global notebook-PC market, with a 19% share, and is poised to overtake Dell as the second largest computer seller in the world. (Read "New Netbooks Debut at Taiwan Computer Show...
...Getting to the top is tough - and holding market share can be even tougher. After setting the pace in netbooks, Asustek has since been losing sales as much larger rivals, including Acer, have muscled in. The company posted its first quarterly loss in the last three months of 2008 after misjudging demand during the recession. "That was a lesson learned," says Asus chairman Jonney Shih, who is adjusting by shrinking the company's product line. Says HTC's Chou: "You're competing with giants like Apple and Nokia. You must really have something special...
...Stan Shih would like nothing better than to see them succeed. Now retired from Acer, the 64-year-old runs a consulting firm, iD SoftCapital Group, that has raised $30 million to fund the branding efforts of Taiwan companies. "If Acer can do it," he says, "so can others." What's in a name? Possibly the future of Taiwan manufacturing...
...Acer these days, R&D is focused on reducing sticker shock. In May, for example, Acer launched new line of ultra-thin notebooks that can run for more than eight hours without recharging yet cost as little as $699. Wang claims these full-featured machines are unique in the market, and that it will take six to nine months for his competition to catch up. "It's not just low price," Wang says. "There is innovation in the product as well." Acer is entering the cell-phone business, and Wang makes no excuses for churning out low-margin netbooks, considered...
...Acer's lowball strategy is not without trade-offs. Despite market-share gains, revenues in the first quarter fell 6.5% from a year earlier to $3.5 billion, while operating income sank 6.1% to $75.8 million. (Wang still expects Acer to match or slightly exceed its 2008 operating profits in 2009.) Bryan Ma, a computer-industry analyst at IDC in Singapore, says Acer risks tarnishing its brand in the long run. But during the recession, Ma says, Acer's product mix will help it outperform. "They're in the right place at the right time," he says...