14 DAY TRIAL // The computer hardware manufacturing market is one of the most volatile segments of the entire industry and this is especially true for the branded computer systems that are made in big quantities while providing users with a rather limited set of options and customizable features. One of the companies that try really hard to force their way among the first few manufacturers of the world is Acer and as it just completed a huge acquisition and has another one prepared, trying to raise the average selling prices for its products.
Acer now needs increased revenues as it will need some big sums of money in order to restructure its newly acquired division Gateway, while keeping its expansion plans in motion and even completing the negotiations with the European company Packard Bell. According to the news site theregister, Acer will continue its policy of trying to increase the average selling prices of its product lines, even as most of the computer hardware manufacturing industry is seeing important price erosions.
While pushing up prices all across its product offering would be the most profitable solution for the Taiwanese company, as it may also erode its customer base that would most likely migrate towards other companies in search of cheaper computer systems. So, the solution that makes the most sense right now is to launch more and more high end systems that would bring more money for the same number of sold units.
Semmy Levit, UK country manager for Acer, told in an interview that the main reasons behind the overall low average selling prices that are found on the market today, are the facts that Microsoft did not succeed in changing the market trend with its newly launched Windows Vista operating system, while a low pricing policy on the components market drove most prices even at a lower level.
The UK manager also said that Acer will continue driving price tags slightly upwards during the incoming year too, while increasing its high end product offerings in order to cover as many market segments as possible. As now Acer has several brands in its portfolio, it may also start and distribute them across several market segments in order to build a larger customer base for each of them. For example, in Europe, Acer may conquer the performance and high end market segments while positioning the Packard Bell brand on the value computer systems segment.