Acer is creating waves in the European market with its new budget of market preference. The company’s notebook inventory clearance was brought to mid-range and their entry-level notebook model’s average selling price in Europe was tagged 40-50 Euros, which caused the Europe PC market to drop down in the price competition.
Consequently, we heard from notebook players that Acer and Asustek Computers have decided to shift their focus to the China market for the second half of 2011.
The reports show that the Acer’s inventory clearance has not only deteriorated the revenue of its own PC sales but also have forced their competitors as well to imitate them and slash down their prices to retain their market shares.
We see that notebook players in Europe are now concentrated on selling their older notebooks at compromised prices in order to compete with Acer and this has adversely affected the sales of the high priced new notebook models.
With further challenges for notebooks in US from the uprising Tablet PC market, the increase of notebook sales in America for the second half of 2011 is doubtful. At present Asustek has a 15% share in the China notebook market, which is higher than that held by Acer.
To stay in the game, Acer will be aiming to amplify their market share in China to 13%-15% in 2011, and thus outshine Asustek in the future.