BREAKING NEWS: Acer CEO Claims Coronavirus Impact Will Be ‘Minimal’ In OZ
The global CEO of Acer Jason Chen has said that disruptions due to the Coronavirus will be “minimal” in Australia.
Chen believes that the chance of a supply chain disruption is unlikely, given that the production resumption rates of its notebook ODMs had improved to 73% on average as of February 18 compared to 23% a week ago, and the resumption rates are still rising.
Chen was speaking following an APEC Business Advisory Council meeting held in Australia.
The comments could see retailers switching to Acer notebooks after Hewlett Packard and Lenovo executives said recently that they are anticipating a shortage of supply due to the virus.
Yang Yuanqing, CEO of Lenovo, admitted last week that the outbreak has impacted the Companies supply chain and shortages are anticipated.
Yang expects Lenovo’s production resumption to reach 100% by the end of March.
He also expects the global PC market to remain flat or decline slightly in 2020.
Chen claims that notebook market is poised for a strong rebound in the second half of 2020 as the coronavirus outbreak has not resulted in severe impacts to demand in other parts of the world including Australia and Europe as compared to the harm that has brought to China.
Acer who has investments in several component manufacturers said that their original equipment manufacturers including Quanta Computer, Compal Electronics, Wistron and Inventec are on track to deliver components.
It has also been revealed that Acer kept a number of production lines in operations during the Lunar New Year holiday, including significant parts of its ODMs’ production facilities in Shanghai and Kunshan.
Some factories that did take a break resumed work on February 10 according to DigiTimes and those in Chongqing also restarted on February 17, Chen revealed.
Chen said inventories of finished products and key components in January were higher than comparable figures of both a month and a year earlier – enough to support its sales and production over the next few months.
Acer’s data shows that its January’s inventories of finished products were 1.1% higher than December’s and 2.9% higher than the same month a year earlier; and January’s inventories of key components such as panels and CPUs were 5.7% higher than those a year earlier.