Acer to focus more on value instead of pushing volume

Posted on Friday, Apr 08 2011 @ 22:22 CEST by Thomas De Maesschalck
Acer chairman and CEO JT Wang revealed the company will no longer push only shipment volume, but will spend more time seeking product value and developing products that consumers need. The company will focus more on recruiting R&D talent, but doesn't expect that the new strategy will significantly affect its profitability.
Acer chairman and CEO JT Wang, at the company's investors conference in Switzerland on April 7, made clarifications about market watchers' concerns over issues such as the company's future direction and performance and pointed out that Acer, in the future, will no longer push only shipment volumes, but will spend more time seeking product value and developing products that consumers need. To accomplish this, Acer will be seeking more R&D talent in the future, Wang noted.

Since Acer currently only has an operating profit margin of less than 2%, market watchers re concerned that the company might bear even more pressure over its finances if the company's strategy is to recruit more R&D talent; in response, the company CFO responded that Acer has estimated its revenue growth in the future will be higher than the increases in R&D spending; therefore, to increase its R&D personnel will only have a 0.2-0.3% impact on its profit margin.


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Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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