Acer raises UK prices
Mighty dollar batters pygmy pound
Acer UK is raising PC trade prices on Monday, September 15 and is blaming the dollar-sterling exchange rate for the move.
This brings it into line with HP, which confirmed yesterday that on Monday it is increasing trade prices in the "mid to high single digits" in response to the dollar rebound. In recent weeks the pound has fallen about 10 per cent to $1.75. For many months, last year, the exchange was closer to $2.00.
Acer's new prices are up 5-8 per cent, depending on the product. The increases, with additional distributor and reseller margins slapped on, will hit the end-user in October.
In a statement today, Acer said the "price change is the result of the recovery of the USD with relation to most major currencies. This change directly affects PC prices as the majority of PC components are priced in USD. We have met with each distribution partner to make them aware of this change and have worked with them on their stock profile to ensure they are in a competitive position in the channel."
In other words, get your orders in before Monday.
So that's the world's biggest PC vendor - HP - and the world's third biggest - Acer - no longer willing to absorb sterling pain. Not long now before Dell, IBM and Lenovo also raise prices. ®
Guess it's a good job I picked up my new Acer 8920G on Thursday then - nearly a grand is bad enough without the extra 8%, thanks very much.
Prices != Costs
In any company with a clue, pricing is only vaguely related to cost. The "reason" for a price increase is always a smokescreen to deflect our attention from the real one -- namely that they decided they could get away with it. Twas ever thus. There's no story here.
Acer Aspire One still discounted to £199 at Currys et al ..
Now that it is clear the battery shortage will still be with us [Bill Withers? - ed] for another 6+ months and the pounds dropped by 12% in the last 6 weeks then I guess now is the time to buy that Acer Aspire One for £199 from Dixons Retail Group (who are surprisingly the cheapest UK place for them!).
I was holding out for the rumoured 6-cell battery before buying but looks like there is no longer a worth while reason to 8-(
Re: this is justified... to a point
Here in The Netherlands Bart Smit are still selling the Asus for €299 (incl. 20% tax ).
So, Eric, is it HP or Acer that you work for?
What's the US dollar got to do with it?
None of my 3 Acer machines was made in the US. Surely it is more relevant what the exchange rate with the Chinese Yuan/RMB or Taiwan dollar is doing. If the US dollar is rising against other currencies, it should just mean Acer gets more profit from the US market. Did they raise prices in the US when the dollar was weak? Are they cutting them now?
I agree with the analogy about petrol. It was ever thus. Two weeks ago when oil was dropping from $150 per barrel to $100, my local filling station lowered the price/litre by 3 pence, then put it back up by a penny a few days later, where it has stayed. We will be lucky if petrol/diesel ever go back to the prices they were, even when crude oil does. The shareholders will be happy with their record dividends though.