Acer plans renewed effort to drag up PC prices
Calling Mr K Canute
Acer will stick with its policy of pushing up average selling prices for its hardware, despite failing to put a floor under prices so far this year.
However, the Taiwanese vendor admitted that at best it would only be able to push up prices on an aggregate level, by launching more products at the high end.
The vendor spelled out its plans to push up prices earlier this year, on the back of a year long effort to increase its market share.
Last week, it admitted that the laws of PC gravity – that prices only ever move in a downward direction – had so far remained unchanged.
Semmy Levit, UK country manager, told El Reg that two factors had combined to undermine ASPs this year. A slip in components prices in the industry had brought overall prices down. At the same time, Microsoft’s failure to set the world aflame with Vista had left PC salesfolk at the likes of PC World twiddling their thumbs (Ed. what, even more than usual?)
That said, Levit insisted Acer had not been hit as hard as other vendors. "[Our] ASP went down not so much, so our performance was better than the market."
He said the vendor would continue to try and push ASPs up next year. The trick would be to continue extending its product range to hit as many price points as possible, rather than increasing price points per se.
Presumably Acer will also be hoping its recent purchase of Gateway, and, by proxy, Packard Bell, will help in this effort. The buy positions Acer as the third biggest PC vendor in the world, which should give it at least a touch more leverage with its suppliers.
The company will also use its extended portfolio of brands to help it segment its product line. In Europe it will use the Acer and Packard Bell brands.
Presumably, Acer will be positioned as the mid to higher priced brand – if only because positioning Packard Bell as a high-end brand would be like sticking a Ford Fiesta as a Jaguar compact. ®
Been there done that
Used to work for Intel R+D doing PC design --- back in 2002 or so there were endless (mind-less) discussions / plans to to get the PC out of its price spiral. Boy that was a hoot
But bottom line is that Intel + MS got their wish in making Wintel the dominate platform ---- and that was by working from '93 till '99 in standardizing every part of the PC down to its last screw (thats why they all look the same). And by getting Asian manufacturers to compete on price down to the penny.
This allowed them to keep dropping prices while they were boosting performance and reliability (Win95 - Win98 - etc - XP) --- And in the process training PC buyers to expect AND demand low prices AND high performance.
Sometimes you get what you wish for .......
Meanwhile I'm typing this on a nice Apple computer running a real OS ..... how sweet it is
Clearly they're just trying to offset the cost of doing business in France:
By any chance, does their plan to drag up PC prices involve bundling 15 copies of Windows with every machine?
So they want to use their large market share and size to push prices up?
This benefitting the customsers in what way?
Aren't their laws and commisions against companies that get so large they throttle the market the way they see fit?
As I recall it's named after a certain boardgame that's become besmirched recently for making mighty Leeds the second cheapest town on the board.
Good News For Planet Earth!
... computer sales are down. Can mobile phones be next, please?