At a recent annual management meeting, Acer made some major announcements including a new structure of its core business units. Amidst the drop in 20% of revenue from last year, the PC maker has decided to split its divisions into 2 clusters, IT hardware and cloud services, smart devices and e business.

The new structure is in the hopes to allow each group the independence to focus and optimise each business model, enhance the allocation of operational resources, propel organic growth, and accelerate the overall company transformation. Despite the slump, the company did manage to increase its profit margins from 8.8% to 9.4% mainly attributed to a slew of new products and SKU including the new gaming series, Predator range.

Upon completion, the new division will consists of IT Products Business: notebooks, desktops and tablet PCs, and its R&D; the digital display and server products businesses; and corporate business planning operations. Business unit will consist of: BYOC and Smart Products Business Acer’s BYOC cloud services, smartphones and wearable devices; the value lab, and e-business.

A painful process nevertheless, however with new product models and moving into the cloud business give a silver lining to the overall outlook for the company. Increase in margins shows Acer has managed to consolidate operating costs (OPEX) and steadying itself on a path to recovery. In the mean time we will enjoy fruits of this exercise, gaming on a Predator!