The second-half outlook for the PC industry in the Asia-Pacific region is more positive than for the first half of this year, but volatile demand in China will be the biggest uncertainty to the industry, Acer Inc (宏碁) said on Thursday.
“It has been challenging for all PC vendors in the Chinese market since the beginning of this year. The growth momentum was much weaker than our expectation,” Acer pan-Asia-Pacific regional president Andrew Hou (侯知遠) told a media gathering in Taipei.
The Chinese market is saturated after experiencing fast growth in the past few years, making it difficult to predict future demand there, Hou said.
Chinese PC vendors stepped up marketing and pricing strategies to secure their position in the market in the past two quarters, posing challenges for foreign brands, including Acer, he said.
Excluding the Chinese market, Hou said the company expects PC demand in the Asia-Pacific to fare better this year than last year.
While consumer demand in India was affected by the government’s new goods and services tax, which took effect last quarter, Acer said the negative effects have subsided and the company has seen signs of recovery in the past two weeks.
Thailand showed a significant improvement in demand while the markets in the Philippines, New Zealand and Australia remained stable, Hou said.
GAMING
The fast-growing gaming products segment and commercial PCs for education and government procurement would remain Acer’s focus for the regional market this year, Hou said.
The company plans to participate in more e-sports events, sponsoring or training a gaming team to increase the exposure of its Predator gaming brand, he said.
In an effort to rejuvenate Acer’s brand image, the company has decided to proclaim Aug. 3 “Acer Day” and promote a two-week online interactive marketing event from Thursday until Aug. 3 in 14 countries in the Asia-Pacific region, Hou said.
Many countries in the Asia-Pacific have a population of more than 100 million with an average age younger than 30, Hou said, adding that Acer is considering revitalizing its brand image and seeking ways build a better relationship with young consumers.
“We admit that our brand image is a bit rigid, based on the market responses in Asia-Pacific markets. We want to change that with this annual event,” he said.
Revenue from the Asia-Pacific market contributed 32 percent to Acer’s total IT hardware revenue of NT$52.77 million (US$1.73 million) in the first quarter of the year, company data showed.
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