Published in Notebooks

Acer thinks the money is in high-margin PCs

by on22 June 2017


And it is paying off

Acer has been focuing on flogging high-margin PCs including gaming notebooks, ultra-thin models and 2-in-1s, and it appears to be paying off. 

Acer CEO Jason Chen said that each segment has been doing well this year. Acer’s revenues from its gaming PC business reached $300 million in 2016 and Acer has been outperforming the market average in many product lines.

Chen said that during the first five months of 2017, Acer’s gaming PC sales went up 80 percent  from the same period a year ago, while the market’s average was only around 30 percent. Acer is also seeing the same trend for its Chromebook business with first-five-month sales growing 80 percent from a year ago. In this case the market’s average growth was only 20 percent.

Acer’s strategy since falling from the peak of its operations three and half years ago, has been focusing on maintaining its profitability. Currently, Acer’s product ASP is up 14 percent from before and gross margins reached 10 percent in 2016, the highest in the past 10 years, Chen detailed.

Acer also sees gold in  virtual reality (VR), content and artificial intelligence (AI). Acer has partnered with Starbreeze to establish a joint venture for VR applications and has started seeing profits since the second half of 2016. The company’s high-performance PC for AI applications also recently acquired procurement orders from Thailand, and the company has already received a total of seven related procurement projects for 2017.

Acer’s VR arm is  focusing on gaming- and movie-related content and is also looking to merge the two concepts. Acer recently partnered with ZeroLight to develop high definition car VR solutions. The company has also been pushing its VR technologies into industries such as real estate, aerospace and training.

 

Last modified on 22 June 2017
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