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Acer CEO Forecasts Strong PC Demand Growth

Acer, the Taiwan-based computer manufacturer, reported a rebound in personal computer demand after experiencing a low earlier this year. The company’s chairman and CEO, Jason Chen, mentioned that demand hit the bottom around May but has since seen a recovery. In the third quarter, Acer’s notebook revenue grew by 19.4% compared to the previous quarter, and desktop revenue increased by 27.8% during the same period. Acer is the world’s fifth-largest player in the PC market, holding a 6.4% market share.

The global PC market experienced a slower decline in the second quarter, with total shipments of desktops and notebooks down 11.5% year-on-year to 62.1 million units, according to Canalys. The surge in demand for personal computers during the COVID-19 pandemic, driven by remote working and home-based learning, slowed in the first quarter of 2022. Economic uncertainty, including rising interest rates and inflation, also contributed to a decline in PC sales.

Acer, established in 1976, produces a range of PC and non-PC products, including laptops, desktops, tablets, monitors, smart devices, electric bikes, and scooters. The company’s primary manufacturing base is in China, with additional production in Southeast Asia, Taiwan, Japan, Korea, and India. Acer believes that the PC market will return to normalcy by the fourth quarter and anticipates the non-PC segment to contribute significantly to its business.

Chen mentioned that PCs, along with the display and monitor business, currently contribute about two-thirds of Acer’s business. Looking ahead, the company expects the non-PC area to constitute at least one-third or more of its business. Acer is optimistic that the PC market will follow seasonality trends, with the first half of the fourth quarter being smaller than the second half. Chen believes that the market will return to normal, emphasizing that inventory channels are depleted in a healthy way.

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