Acer Inc., a flagship Taiwanese developer, was sweating just half a decade ago. The firm’s foreign CEO, Gianfranco Lanci, had resigned in 2011 after a bitter dispute with fellow executives. For the next few years Acer offered mostly ordinary PC, shipments of which were declining against competition from mobile devices. But the Taiwanese firm launched 42 years ago hooked up in 2008 with Google to develop Chromebooks, light notebooks that run on speedy, cloud-based systems created by the Silicon Valley partner.
Global Chromebook sales totaled 8.5 million units in the first three quarters of 2017, up 193% over the same three of 2015, according to market research firm Canalys. American public schools make up much of the market. In that realm, 72% of all PCs shipped in the three quarter of last year were Chromebooks, the IDC market research firm says. Chromebooks are being used as well in retail and financial services.
Acer now has the world's highest Chromebook market share. Here's how it got that way.
Early arrival advantage
Acer, the world No. 6 computer vendor as of 2016 with market capitalization of $2.94 billion today, was among the first vendors to sell a Chromebook and stay in the game.
Dell, Hewlett-Packard and Lenovo also make Google’s PCs for schools, says Linn Huang, an IDC research director covering PCs. Samsung does the same for mass consumers.
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“Acer has shown a higher proclivity to take risks on new technologies, and its quickness to dive into Chrome OS has served it well,” Huang says. Shooting to be more than just another PC maker back in 2013 after losing money most of that year, Acer has tried out smartphones but didn’t grab much attention.
Today the Taiwanese developer is thriving on advantages in Chromebook R&D and production capacity, says Jessica Hsu, senior industry analyst with the Taipei-based research firm Market Intelligence & Consulting Institute.
More types of Chromebook
Acer has shipped more than 20 Chromebook models since 2011 with screen sizes from 11 to 15 inches, a publicist for the company in suburban Taipei says. Some are convertibles. Some use touchscreens. And others come with a stylus. You can even get Chrome OS desktops.
This month Acer debuted its 11.6-inch C732 model made for “ruggedness,” including protection against intrusions by objects and water, the company said in a statement January 23.
Flexibility in form and features matters.
Consumers care about the PC’s form and want supporting Android apps for entertainment features, says Tseng Kou-han, a notebook analyst with Taipei-based market research firm TrendForce. Two-in-one designs with touchscreens or a stylus “may continue to raise Chromebook’s shipments” year on year, Tseng says.
“Acer, Dell and HP are key PC players in the education market, they all have outstanding performance and will introduce new spotlights like low power consumption,” the analyst forecasts. For consumers, Tseng says, “Acer is proactive in trying new varieties, such as 3:2 display for the 2-in-1 models.”
Pricing flexibility
For schools, unit price counts a lot toward whose Chromebook sells, analysts say.
Acer has shown flexibility on this count, too. It was selling Chromebooks for around $200 in 2015 and came out with a model then it billed as budget-friendly. So what if prices are a little higher now?
“Acer has had a wealth of experience, and more importantly a willingness to live in the value end of the pricing spectrum,” Huang says. “While other vendors have bemoaned the margins available selling $300 Chromebooks, Acer has historically relished in the volume of this type of business.
