EXCLUSIVE: Acer Lifts Profits 6.7% As HP Profits Slump Over 70%.
Acer Australia has avoided a massive slump in profits recently reported by archrivals Hewlett Packard and Lenovo despite a fall in revenues.
In their latest ASIC filings, the Taiwanese Company reported a 6.7% increase in profits to $2.1M from revenues of $286.4 Vs $307M for the prior year.
The increase in profits were delivered after the Company chose to avoid rampant discounting that has seen several PC brands forced into retail rebate programs that seen their profitability slump.
One stark example is Hewlett Packard’s PC division in Australia.
In their latest filings the US PC Company saw their revenues climb by from $1.62 Billion to $1.69 Billion but their profits slumped over 70% from $126 Million to $36.1 Million as one insider said, “We still had to pay retailers their pound of flesh to get ranging” said one HP insider in Australia, who also claimed that orders from retailers in Australia had slowed in recent weeks with stock “only being ordered weekly” by retailers who appear to be reducing their risk while preserving cash flow.
Last week we reported that Lenovo reported a 10% lift in revenues, profits fell 69% from $12.5 million in 2018 to $3.37 in 2019. Revenue at the Company who is currently expanding their consumer offerings in Australia went from $728M in the 2018/2019 financial year to $799M in their latest filings.
A big contributor to Acer’s profitability has been sales of their PC gaming gear along with their strength in the education market in Australia. This success has seen both Lenovo, Dell with their Alienware range and HP along with MSI and Gigabyte move to expand their PC gaming range in Australia as more Australians take up gaming due to enforced hibernation due to the COVID-19 epidemic.
According to the CEO of Acer Australia Darren Simmons the Company has deliberately been selective when it came to launching consumer PC’s in Australia.
“We have had a lot of success with PC gaming PC’s and monitors and we are seeing excellent demand from both Federal and State Government departments for our commercial PC’s”.
“We also work closely with retail partners, but we are not prepared to lose money just to get a retail sale. It has to be a win, win situation for all parties” he said.
Acer Australia who is headquartered in NSW is currently waiting on stock after what Simmons described as a good start to 2020 despite the COVID-19 virus.
Yesterday we reported that Acer notebook sales in Canada and the US jump 105 percent and 135 percent, respectively, on year in March 2020 in Australia first quarter sales are also up according to local CEO Darren Simons who expects to see new stock in June July.
His May shipments have already been sold to retailers, also in demand are Acer monitors.
Globally, Acer’s consumer monitor sales grew 17.1 percent on year in the month and it has a 20 percent share in the gaming monitor market.
Taiwan-based Digitimes Research has predicted that Acer notebook shipments will increase by 1.5 million units or 77 percent in Q2, driven by sales of Chromebooks and gaming notebooks.