Acer 2010 Annual Report Download - page 5

Business Report to Shareholders
Reflecting on our business performance in 2010, Acer Inc. achieved record highs
in both consolidated revenues at NT$629.1B (US$19.9B), up 9.6% year-on-year
(YOY), and operating income at NT$18.2B (US$ 575 M) with 18.7% YOY growth.
Profit-after-tax (PAT) was NT$15.2B (US$478M) and earnings-per-share (EPS) was
NT$5.71.
Acer’s IT product shipments maintained stable growth in 2010. According to leading
market research company, Gartner, Acer grew 14.3% in total PCs and 12.6% in
notebooks YOY; both growth rates were higher than our major competitors.
Worldwide, Acer ranked No. 2 for both total PCs and notebook shipments.
Regionally, Acer reigned the top position for notebooks in EMEA (Europe, Middle
East and Africa), ranked No. 3 for total PCs in the USA, and continued our
expansion among the emerging markets. In China, the integration of Founder’s PC
sales division and channel immediately expanded Acer’s presence; in Q4 2010 Acer
ranked No. 2 for total PCs and No. 3 for notebooks in China.
Looking ahead to 2011, Acer expects to maintain steady growth in the overall total
PC market, with notebook products and emerging markets leading the way. As
PCs become an indispensable commodity for everyday life, owning multiple PCs is quickly becoming a norm in
households; hence, consumer PCs will play a key role. Another contributor shall come from the commercial market
where our goal is to grow quickly and generate good returns, especially from the small and medium-size businesses
by offering a full product line to meet the commercial market needs.
In view of rising consumer demand for IT applications, a new era of information communication technology (ICT) has
dawned. The prevalence of new digital media and services is converging with the internet and influencing lifestyles.
The PC industry landscape across the globe is changing according to new usage models, user requirements, form
factors, and by the sharp rise in popularity of smartphones and tablet PCs. Similarly, acceptance of open operating
systems is altering the environment. To conclude, the solution that offers quick access to internet, easy connection
and media sharing, shall have a huge market potential to become the next hot-seller in the PC market.
Acer’s key priorities in 2011 are to pursue for better operating income, enhance our position as a world-leading
vendor of notebook PCs, further expand into key emerging markets, and boost our presence in the commercial PC
space. Moreover, Acer aims to collaborate with more telcos in order to penetrate into the fast-growing smartphone
market. In tablet PCs, we need to place solid footing in this space as soon as possible and become one of the
leading players.
Additionally, we aim to expand market share among our regional operations and product lines, and aggressively
develop new product innovations, focusing on helping users to easily enjoy the content and services available to
them. We will continue pushing for higher efficiencies which, in turn, will lower operating expense and enhance our
cost structure and overall competitiveness.
The new ICT market is expanding rapidly, bringing new competition as well as new prospects. Acer is preparing
itself to seize the new business opportunity, and to create stable onward growth.
Finally, as a global citizen Acer shall fulfill its obligation to contribute towards corporate social responsibility and build
a sustainable business. On behalf of Acer, I wish to thank each shareholder’s long-term support and continuing
guidance for a mutually winning future.
Sincerely,
J.T. Wang
Chairman & CEO
BUSINESS REPORT
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ACER INCORPORATED 2010 ANNUAL REPORT