The president of Acer's Pan-Asia Pacific operations, Andrew Hou, pointed out that irresistible momentum in India and Indonesia, coupled with a rebound in business PC sales, has offset the sluggish consumer PC market. Notably, India has achieved Acer’s best sales performance to date.
Hou remarked that the consumer market is expected to remain weak in the second half of 2024, with full-year growth driven primarily by the business sector and individual markets such as India, Indonesia, the Philippines, and Thailand. Despite headwinds in the consumer market, Acer will persist in its efforts to achieve growth throughout the year
Revenue from Acer's Pan-Asia region now accounts for around 50% of the company’s overall operations, making it one of the key drivers of growth. In the first half of 2024, Pan-Asia revenue saw a 17% year-on-year increase, where the business market contributed up to 45% of the total. In 2023, the business market accounted for 42% of the region's revenue.
Hou stated that 1H24 witnessed notable performance across various markets. For example, Acer ranked first in market share for gaming laptops and overall notebooks in both the Philippines and Thailand. On top of that, Acer held the top market share in the business and government sectors in the Philippines, India, and Indonesia.
Growth momentum in India and Indonesia remains promising, according to Hou. India, in particular, has surpassed its initial market share target of 10% set at the beginning of the year, reaching 11%, with exceptional performance expected to persist in the second half of 2024. Hou also added that the efforts in the Indian market are beginning to yield results in 2024.
Acer has established a foothold in India over the past 25 years, and in 2024, it set a new revenue milestone of US$600 million, with a remarkable 20% year-on-year increase, having achieved notable growth across both business and consumer markets. By 2023, Acer’s market share in the business sector in India soared to 60 to 70%.
Hou specified that India's domestic market is highly competitive, akin to mainland China. As a result, Acer's strategy involves local production and local sales, with the Indian government also encouraging brands to manufacture locally. Currently, Acer produces desktop computers and servers in India per se, while notebook production is outsourced to DIXON.
Hou noted that Acer is at the forefront of local manufacturing in Indonesia, positioning itself as a leader in this early-stage strategy. Competitors like ASUS and Lenovo are also making strides in this area. Beyond PCs, Acer has begun producing servers and acerpure products in Indonesia, actively working to widen its competitive edge.
Acer currently employs the completely-knocked-down (CKD) model for 40% of its production in India, which yields an impressive gross margin. The company is also planning to expand its facilities, with completion expected in September. Once completed, the annual production capacity in Indonesia will double.
As for the Chinese market, Hou hoped that it would continue to perform well. Given the intense competition and continuously falling prices in the local market, Acer aims to avoid incurring losses in the pursuit of market share. Therefore, the company seeks to implement a more sustainable business model, with an emphasis on achieving positive gross margins.
Hou expressed gratitude for the support from headquarters in permitting the search for local ODMs in China. With local manufacturers showing strong capabilities, the shift to local production and sales has led to a healthier operational status in China.
