Computer Memory

Acer is one of the largest producers of computer hardware in the world in the modern day and is a multinational company with its HQ located in New Taipei City, Taiwan.

However, as is the case with many companies, it had quite humble beginnings. It began in 1976 with an investment of just $25,000 of capital and the company (then known as Multitech) was founded in Hsinchu City by Stan Shih, his wife Carolyn Yeh and five other investors. To begin with, the enterprise was concerned primarily with the distribution of electronic parts and would go on to be a big part of the emerging IBM PC market. 

By 1987, the company had become a major player in PC manufacturing and it was at this point that it became known as brand Acer.

By the end of the 1990s, Acer had reorganised itself into 5 subsidiaries:

Acer International Service Group
Acer Sertek Group
Acer Semiconductor Group
Acer Information Products Group
Acer Peripherals Group
 
In the year 2000, another restructuring occurred, as Acer extricated itself from the contract manufacturing side of the business, which then had two primary parts - Wistron Corporation and BenQ, which it then sold to concentrate all of its time and resources on designing and selling computers.

This is the point where the company began to resemble the one we know today, as it began to significantly increase its worldwide sales. By 2005, despite employing just 7,800 people globally (which is not a lot for a major producer of computers), it was turning over more than $11 billion annually.

Notebook Success
One of the major drivers for Acer’s success during this period was its production of consumer notebooks and as we mentioned earlier, the company’s overheads were relatively low, which meant they enjoyed more success than most in this field.

Acer products are used across the world, but it is in Europe that is holds the largest of its market share and it tried to buck the trend of online retail sales in favour of more traditional retail distribution channels.

Acquisitions
In 2007, Packard Bell and US company Gateway were acquired by Acer, which led to the company becoming the third largest provider of computers in the world and the second largest for notebooks. Acer’s ultimate goal is to become the largest PC vendor on the planet and it is one that they are confident in pulling off, with the European computer market continuing to prove a good hunting ground for the multinational.

Prior to being bought out by Hewlett Packard (HP) in 2002 for $25bn, Compaq Computers came into being in 1982 and the company was a major producer of computers and computer-related products. Compaq (which stands for Compatibility And Quality) was amongst the first producers of IBM PC compatible computers. It had its centre of operations in the state of Texas in the US and would go on to be a major player in the computer market in the ensuing 20 years.

The Founders
The company came into being when Rod Canion, Bill Murto and Jim Harris, all of whom had been senior managers for Texas Instruments in US, got together. Each of these men invested just $1,000 into the new company and at that point, the enterprise was named Gateway Technology. It wasn’t until a few years later that the Compaq brand was realised.

Murto, senior VP in charge of sales left the company just 5 years later in 1987, whilst Harris (Head of Engineering) and Canion (CEO and President) moved on after a company restructuring in 1991. This led to Eckhard Pfeiffer being appointed President & CEO, a position he held right through the 1990s.

Roaring Success
During the boomtime for PC systems in the 1990s, Compaq became the world’s biggest supplier of computer systems and its acquisition by HP was largely driven by the company’s struggles in keeping up with competitor, Dell computers. Despite the merger with Hewlett Packard, the name Compaq remained up until 2013 albeit only for HPs lower end models.

Harris County, Texas
After its takeover, HP continued to use Compaq’s Headquarter facility in Harris County, Texas, a site that is still their largest US based manufacturing plant and one it uses to this day.

The First Compaq Computer
The very first Compaq branded PC was the brainchild of Rod Canion, who is reported to have sketched its design on a table mat whilst dining in a pie shop in Houston. The fledgling enterprise required funds to turn this concept into reality and that came from angel investors Benjamin and Sevin Rosen who pumped $1.5m into the company and make their dreams a reality.

HP Today
Hewlett Packard, a name synonymous with PCs and printers for many years, traded under this name until 2015, when a reorganisation meant that it dropped this brand in favour of HP Inc, the current legal name of the company. Under this new moniker, the company continues to be a major producer of PCs and laptops with a regular turnover in excess of $50bn per annum.