Wednesday, May 29, 2024
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The chairman and CEO of Acer, Jason Chen, has projected a resurgence in PC sales driven by the work-from-home culture and the growing demand for chatbots. Speaking at the Computex Taipei tech show, Chen stated that the pandemic-induced surge in PC purchases for remote work and home study would lead to an increased need for replacements during the upcoming refresh cycle. This demand, coupled with rising unit prices, is expected to counter the previous decline in PC sales caused by weak consumer confidence due to inflation and interest rates.

Chen explained that the macroeconomic factors of inflation and interest rates had negatively impacted consumer confidence, resulting in a significant change in end-user demand over the past year. However, the trend of remote work and studying from home is set to continue even as Covid-19 restrictions ease. Chen highlighted that each family member having their own PC instead of sharing one has become a common practice, contributing to the larger installed base and the need for higher numbers in the upcoming refresh cycle.

The CEO noted that certain fields such as accounting and human resources have adapted to remote work models, making it challenging to transition employees back to traditional office setups. As a result, the demand for PCs is expected to remain steady. Consumers are already showing an interest in purchasing PC accessories such as docking stations and connectors.

While overall PC shipments experienced a decline in 2022, with the first quarter of 2023 reflecting a further decrease, Acer remains optimistic about the future. Chen emphasized that rising average sales prices of PCs, driven by strong computing power and components made from recycled materials, are likely to boost sales revenue. Additionally, the demand for generative chatbots, including ChatGPT, is expected to drive the purchase of late-model PCs, as phones are not suitable for such purposes due to their limited input capabilities and small screens.

Chen also highlighted the increasing PC adoption in countries like India and Indonesia, driven by their sizable young population and growing manufacturing sectors. Acer, ranked as the fourth-largest vendor in India by market research firm IDC, plans to expand its sales and marketing efforts in both countries. Furthermore, Chromebook orders are on the rise, with school districts in the US and Europe placing orders, and discussions for sales in India and Japan underway.

In conclusion, Acer anticipates a rejuvenation of the global PC market as the work-from-home culture persists and the demand for chatbots continues to grow. The company remains poised to capitalize on these trends by offering PCs with enhanced features and expanding its market presence in key regions.

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