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Acer's average product price jumps

by on21 June 2010

Weak euro, strong demand
Acer has revealed that it has increased the average selling price of its products for the first time in five years.

Acer chairman JT Wang claims that it’s a “very rare event”, but notes that consumers are still happy and Acer’s recent sales results seem to prove this. Wang said that Acer dynamically adjusted prices over the past two months and that end demand still remains strong.

It appears consumer demand has recovered much faster than most analysts had anticipated; hence vendors are being forced to increase their prices, as stronger demand pushes production costs up. The weak euro has also caused PC companies to rethink their prices. Component prices are expected to stabilize in the next few months and slightly increased labour costs should not have a major impact on prices, as the share of labour costs in the end price is relatively low compared to the price of components.

Although we did not see many outright price hikes in the EU, many vendors chose to maintain old, higher prices in EU markets. Some vendors also chose to offer SKUs with fewer features in order to maintain attractive price points.

“In any case, it doesn’t really affect us because if we buy high [from the contract manufacturers], then we’ll sell high [to consumers],” said Wang.

Acer has remained a beacon of optimism throughout the slowdown and it believes in will overtake HP as the largest PC supplier in 2011. It has already outpaced HP in notebook shipments, so it has reason to be bullish.

More here.
Last modified on 21 June 2010
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