Acer’s prediction: US PC builders will not survive more than 20 years

25th January, 2010 by Adina
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Stan Shih, Acer’s creator and former chief, said in an interview for the Taiwanese Commercial Times that he would not expect PC makers form the United States to survive more than the next 20 years. He thinks that the tendency towards budget PCs is still valid for the next years and US companies do not have the sharp sense of the market Southeast Asian firms like Acer possess. He also appreciated that US computer manufacturers do not know how to put this kind of products on the market and compared American PC builders to their TV brands like Zenith, which was acquired by LG more than ten years ago.

These comments are fully supported by Acer’s recent results, which is above Dell in PC shipments in fall 2009. Acer is also credited with the potential of also surpassing Hewlett Packard this year, but this depends on a sustained demand for Acer’s overall line and especially for netbooks.

Stan Shih’s predictions are however questioned by others. Although companies as Hewlett Packard have slowed down their growth and others like Dell are on the decline, Apple is continuously growing despite having an almost three times higher average selling price than its competitors. Apple is effectively controlling US retail notebook sales with prices above $1,000 although it had to bring more economic systems on the market. The company continues to grow adopting a high-end strategy, in contradiction with Shih’s predictions.


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