After two years of the explosive growth in demand for PCs during the pandemic, it seems that the bullish growth trend is showing signs of slowing down, as more people returning back to the office instead of staying at home post-pandemic. And it seems that globally renowned laptop manufacturers from the likes of Asus and Acer seem to think so as well.

The Taiwanese media outlet, Commercial Times, reports that in Acer’s quarterly shareholder conference, the brand’s CEO, Jason Chen had announced that the company is shifting its sales outlook for the year 2022, as the company had analysed that based on the current data, the global PC market supply has officially exceeded demand.

Amidst the chip shortage issue being gradually resolved since the end of the last year, the company’s sales for Q1 2022 have been greatly improved compared to Q1 2021. And as for international freight shipping, despite the frequent port congestions and long waiting times for sea and air cargo shipping globally, the shipping rates have surely gotten cheaper for multinational companies in 2022. This change allows laptop manufacturers like Acer to lock in sales faster as they can produce more, and then more of the brand’s products will be able to reach storefronts for customers to buy.

But there is one caveat to this in 2022. CEO of Acer Inc, Jason Chen states that in 2022, the United States had raised the federal reverse interest rates higher to increase global inflation rates and coupled with rising food shortages caused by the war between Russia and Ukraine, demand for PCs is just generally low for buyers right now. Chen explains that buyers will now shift their purchasing focus from their wants (ie the more expensive electronic goods) to the basic necessities like bread, rice, butter and cooking oil, as inflation continues to be rising across the globe. 

In turn, Chen believes that electronic goods like laptops and smartphones in the next few years will experience much lower demand and have a longer upgrade cycle, not only because people saving and spending money on food, but also because the newer laptops and smartphones of today work just fine to last you 3 to 6 years, and they see no need to replace them.

Chen believes that Acer conquering the PC market requires sufficient analysis with efficient strategies. Acer’s business operations span across laptops, desktops, displays and non-PC business subsidiaries as well. In the report, Acer notes that almost 22% of the revenue generated in April 2022 this year was held by its non-PC and non-display businesses, and the company’s business revenue grew 7% YoY compared to 2021.

And as a closing note, Chen reiterates that Acer as a company to ready to face the uncertainties of the PC market, and that it will always do its preparations against the unexpected to stay strong in its current position as an industry leader in the market.

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(Via)

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