Tuesday, July 5, 2011

Acer, Asustek turn marketing focus to China market in 2H11

Acer's notebook inventory clearance bringing a drop to mid-range and entry-level notebook models' average selling price in Europe by 40-50 euro, causing the Europe PC market to fall into price competition, so both Acer and Asustek Computer have decided to move their marketing focus to China in the second half of 2011, according to sources from notebook players.

The sources pointed out that Acer's inventory clearance not only impacted Acer's profitability, it also caused Acer's competitors to all follow suit and cut their notebook price to maintain market share. Since notebook players are selling their older notebook models with low prices in Europe to counter Acer, demand for higher priced new notebook models is relatively weaker.

With the notebook market in the US is facing an impact from the tablet PC, and the market status rather uncertain, the sources believe the US notebook market is unlikely to present strong growth in the second half of 2011.

Currently, Asustek has a 15% share in the China notebook market,and Acer is aiming to increase its market share in China to 13-15% in 2011 and surpass Asustek.

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