Acer is optimistic about its future operations, forecasting better results in 2024, as it expands production in high-speed connectors and other key areas. The company highlighted that the second half of 2023 will see moderate growth in its industrial and automotive segments, with a recovery in its cloud communications division as it transitions from WiFi6 to WiFi7 technology. Additionally, its computer peripherals and consumer electronics division is set to benefit from AI PC distribution, expecting double-digit growth during the industry’s peak season.
In the first half of 2023, Acer’s revenue was distributed across four main product lines: computer peripherals and consumer electronics (54%), industrial products (22%), cloud communications (17%), and automotive (7%). These figures are similar to the prior year. However, Acer’s strategy of expanding into high-margin, high-speed transmission products has helped improve profitability, with gross margins rising from 18.9% last year to 22.01%.
Acer’s most profitable product, connectors, suffered from low utilization rates last year, contributing to losses. However, utilization has rebounded significantly, reaching 70% in Q2 2023, and further improvements are expected. With this recovery and continued expansion, Acer anticipates surpassing NT$100 billion in revenue, aiming to match its prosperous 2021 and 2022 levels.
