US Business News

Acer CEO Predicts Resurgence in PC Demand with Robust Growth

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Acer’s Positive Outlook on PC Demand Recovery

In an encouraging update, the Chairman and CEO of Acer, Jason Chen, expressed optimism about the resurgence of personal computer (PC) demand. This marks a substantial turnaround, with demand hitting its lowest point earlier this year, primarily due to the challenging circumstances imposed by the global pandemic. The current scenario shows promise, as the need for PCs rebounds.

A Glimpse at Q3 Performance

As per Chen, the third quarter has already witnessed a notable year-on-year growth in PC demand. Acer’s performance in this period is particularly impressive. The company reported a remarkable 19.4% growth in notebook revenue compared to the previous quarter, while desktop revenue surged by a substantial 27.8% during the same period. This resurgence demonstrates the adaptability and resilience of the PC industry, as it quickly responds to shifting market dynamics.

Acer’s Position in the Global PC Market

Acer is a significant player in the PC market, currently holding the fifth position with a market share of 6.4%, according to Canalys. The four leaders in this arena are China’s Lenovo with 22.9%, followed by HP (21.6%), Dell (16.6%), and Apple (11%). This competitive landscape showcases the global presence of PC manufacturers and highlights the diversity of choices available to consumers.

Insights from Canalys Data

Canalys data shows that the global PC market experienced a slower decline in the second quarter, with a year-on-year decrease of 11.5% in total shipments of desktops and notebooks, amounting to 62.1 million units. This is a welcome shift after two consecutive quarters of significant decline, where shipments dropped by over 30%. This data suggests that the PC industry is not only resilient but also capable of adapting to the evolving demands of consumers.

Factors Behind the Fluctuations

The demand for PCs surged due to the COVID-19 pandemic, driven by remote working and home-based learning, creating an increased need for personal computers, including desktops, laptops, and notebooks. However, this trend experienced a sharp decline in the first quarter of 2022. Uncertainty in the economic environment, coupled with rising interest rates and inflation, caused consumers to cut back on spending, impacting computer sales. This shift underscores the interplay between the broader economic environment and consumer preferences.

Acer’s Product Diversity

Established in 1976, Acer is a versatile tech company that manufactures a wide range of products, including PCs (laptops, desktops, and tablets), monitors, smart devices, and even electric bikes and scooters. While the company’s primary manufacturing base is in China, it also produces in various other locations, such as Southeast Asia, Taiwan, Japan, Korea, and India. This diversification allows Acer to cater to a wide range of consumer needs and preferences.

A Glimpse into the Future

Looking ahead, Acer is confident about the recovery of the PC market and expects it to return to a sense of normalcy by the fourth quarter. Chen shares that they believe the PC market will align with seasonality, with the first half being less active than the second half. This positive outlook is based on the observation that inventory within the channel has been effectively depleted, positioning the company well for future growth. This long-term perspective highlights the resilience and adaptability of the PC industry, which continues to respond to changing market dynamics.