Sat, Jan 19, 2019 - Page 12 News List

Acer Inc bullish on gaming revenue

ENTERPRISE SEGMENT:The company plans to expand its sales channels to reach more small and medium-sized businesses, and deepen relations with large organizations

By Ted Chen  /  Staff reporter

A model holds the latest model in Acer Inc’s Swift notebook series, the Swift 7, which is 8.98mm thick and weighs 1.1kg, at a news conference in Taipei yesterday.

Photo: CNA

PC maker Acer Inc (宏碁) expects to maintain its strong position in Asian markets this year despite rising headwinds, a company executive said yesterday.

Annual growth momentum of the global PC gaming market is not expected to continue at last year’s pace of between 30 and 40 percent, but rather drop to little more than 10 percent this year, Acer Asia-Pacific regional president Andrew Hou (侯知遠) was quoted as saying in a report by the Central News Agency (CNA).

Ongoing shortages of Intel Corp processors and the US-China trade dispute would continue to drag on growth, while the gaming segment would see heightened competition as rival gaming brands offer more complete product lines, Hou said.

Acer, which saw revenue contribution from its global gaming division rise 70 percent year-on-year last year, expects the lucrative segment to grow 50 percent this year, backed by the brand’s growing strength among gamers, he said.

Gaming revenue in Asia last year posted 100 percent year-on-year growth and it is likely to continue at a breakneck pace this year, Hou said.

While the company’s overall revenue last year rose 2.2 percent year-on-year to NT$242.57 billion (US$7.86 billion), Acer has set a modest goal of avoiding negative growth this year, he said.

Hou, who also heads Acer’s Taiwanese sales operation, said that this year the company would focus on enterprise customers at home.

The company was able to post 4 percent annual revenue growth in Taiwan last year, a considerable achievement in light of the nation’s highly mature and shrinking PC market, he said, adding that its enterprise PC unit registered 2 percent year-on-year growth.

Following its success in clinching education and government procurement contracts, the company is to expand its sales channels to reach more small and medium-sized businesses, and deepen its relations with larger organizations such as financial and medical institutions, he said.

Separately, Samsung Electronics Taiwan Co Ltd (台灣三星電子) yesterday said that overall handset sales in Taiwan this year are expected to decline by between 5 and 7 percent from last year, CNA reported, citing Jacob Chen (陳啟蒙), vice president in charge of the information technology and mobile communications businesses.

However, the company is targeting growing its annual revenue by more than 10 percent through the introduction of a better product lineup and the renovation of existing outlets, Chen said, without giving exact numbers in New Taiwan dollar terms.

Samsung Taiwan aims to adjust its product mix by the end of the year, with a full range of models that comprises 30 percent in the high-end, 30 percent in the mid-end and 40 percent in low-end range, he said.

Additional reporting by staff writer

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