Acer Chases 50% Growth In 2019, As Demand For Predator Gaming Machines Grow
Five-year s ago as PC gaming was starting to come back Alienware was the #1 PC gaming machine, today it’s Acer that is scooping up market share to the extent that the Taiwanese Company is looking at 50% growth in demand for their popular Predator gaming machines in 2019.
According to Acer’s Asia Pacific President Andrew Hou it will be Predator gaming machines and a new generation of premium wafer-thin notebooks that will deliver the growth.
In 2018, Acer’s overall revenues grew 2.23% to US$7.8 billion despite processor shortages, gaming was the biggest category to deliver growth with the Company set to compete with Samsung and LG in the gaming monitor market this year.
Among the new products will be a 49″ gaming monitor that will take on offerings from Acers two Korean rivals. Samsung is also looking at getting back into the PC market, however Australian observers claim that the move will be “tough” due to a lack of gaming PC range.
In the Asia Pacific market Acer reported 9% overall growth for the last three quarters according to Hou despite the Intel processor shortages. Growth also came from Chromebooks where Acer has the majority share particulary in the education market.
Acer’s revenues from gaming PC products grew 70% overall in 2018 above the 30-40% growth of the gaming category.
Hou claims that US-China trade tensions plus the ongoing shortages of Intel CPUs are expected to make the notebook market more challenging for Acer in 2019, with several brands set to struggle. The shortage is also tipped to hold prices of notebooks up with retailers benefitting from increased prices.
Revenues from the gaming notebook business accounted for 12% of Acers overall revenue with ultra-thin notebooks that are proving popular with Australian Government departments and schools delivering 35% of the overall revenue.
The Company said that they plan to push ultra-thin notebook share over 40% and gaming notebooks to 20%.
Cheap bottom end notebooks which in 2018 made up 65% of their overall notebook sales is set to fall to 40% as Acer concentrates on premium high-performance notebooks in 2019.
The Company has also become “selective” over which retailers stock their products with the Company refusing to get into margin fights with retailers looking to improve a shortfall in profits by “demanding” higher margins or rebates due to falling profitability.
“We have the products that consumers business and gamers want, and we are here to work with retail partners in growing the demand for our premium products” said an Acer executive.