The Inquirer-Home

The last thing a PC manufacturer does these days is manufacture a PC

INQterview What makes Acer recession proof
Tue Sep 23 2008, 18:37

ACER UK MD David Drummond is sitting pretty right now. "You can't talk to someone in the automotive industry and complain that times are tough when we've seen 35 per cent growth in laptops in the first half of the year," he jokes, as we touch on the banking fiasco in our wide-ranging chat here on the banks of the Danube in Budapest.

"So far, the PC industry has proved pretty recession proof," he says. And he doesn't see the market for gadgetry drying up this side of Christmas. " Materials are maxed out, freight is maxed out and we're really busy going into Q4."

And Q4 is looking good for Acer in the UK. "We have had a very, very good year in terms of volume growth, says Drummond. "We'll be vying for the top spot in Q4."

alt='drummond'

Number One spot in terms of volume is what Acer is aiming at in all its markets. The firm is enjoying phenomenal growth, largely because it happens to be focused on the right product – laptops.

In most of the territories in which it operates, the firm bubbles around the top three, battling the likes of Dell and HP. And Acer is slowly overhauling its rivals and its aggressive approach and focus on building its brand profile seems to be paying off.

Dell's recent woes are easily explained by Drummond. "It's next to impossible to run both a direct and indirect business," he says.

Acer itself is 100 per cent channel focused although, since it now does more than 80 per cent of its UK business through retail outlets, its channels have evolved somewhat over recent years. "No one has factories any more," says Drummond. "The last thing a PC manufacturer does these days is manufacture a PC. "

Drummond took on the job of managing director of Acer UK in January, drafted in from the firm's South African operation. He takes over the reigns from Gianpierro Morbello, who ran the UK business from Italy with country manager Semmy 'conductor' Levit based in London. Morbello has moved up to take charge of marketing at Acer Inc worldwide and the success of the UK operation have given Semmy a leg-up into the heady world of Acer's professional division in Emea.

The change reflects Acer's desire to install local personnel to run individual country businesses, while each follows the strategy mapped out by Acer central. That strategy is to "segment the market around the user rather than technology, like processor, screen size or price."

For more on Acer's multi-brand approach go here.

The way the notebook market works these days is that the likes of Acer, Dell and HP design the products they want to flog and then get these made at the best possible price in China. All three firms' laptops could be made in the same factory and stuck on a slow boat from China. "Five years ago, 20 per cent was shipped by sea. Today it's around 80 per cent. It's a consequence of the cost of fuel becoming greater than the cost of money," said Drummond.

It takes 28 days for the boat to make the journey from China to the UK.

With its proximity to manfacturers in the far east, having its design centre in Taiwan, Acer has always proved itself well placed to mount a challenge to both HP and Dell in terms of cost of delivering to market. It's focus now is on marketing and brand building and the firm has a set of goals mapped out in a strategy that aims to have it as the "Number One" computer-seller in terms of volume by 2011.

And if you look at the firm's progress over the past few years, it would be a foolish man indeed who would bet against it. µ

Share this:

Comments
..Acer OK..

..I agree Acer nbs are OK once you get rid of their Acer crapware and upgrade the hdd and ram..I bought my wife a TM 4223WMLI, swapped in a 7200rpm hdd and added another gig of ram and a clean copy of xp plus drivers from the hidden partition - voided warranty yes, improved nb performance, definitely!!!

posted by : interested party, 24 September 2008 Complain about this comment
I would like David to comment on...

...why Acer laptops are regarded by the majority of IT professionals in Australia as the poorest quality available. 

It is probably because they are the cheapest available, often cheaper than Dell Direct. 

They frequently die a short time outside of warranty, the paint wears off, they flex under their own weight, have weak hinges, poor quality plastics and overall the design feels like they were trying to avoid having a uniform shape or flattened bottoms. 

Why can I pick up a Lenovo, manufactured entirely in China of all places, sell it to a customer with a 3 year warranty and be sure that it won't come back to me with hard ware problems, broken hinges, faded paint or seemingly just "falling apart" around the keyboard? My suppliers actually stopped offering extended warranties on Acer laptops. 

Is it little wonder that Acer has no "real" corporate/business-only line of laptops? They know no one with money or view on quality would want to be seen with an Acer.

Most of the laptops coming in for repair are Acer laptops, nothing too old either. 

We ceased selling them and tell all prospective customers to steer clear, no matter how cheap they are.

posted by : Dale Michael Janssen, 24 September 2008 Complain about this comment
Paul Makes NEW Word, YEA.

INQterview Now C Reg & TM Paul Hales USA.

Jenniffer Anderson from Univ of Calif |Brockly, writes:
Paul I'd Give Up Hooping For ONE Round of Kick Boxing With You.

Paul, Were All So Proud of You!

Yea. Hot Stuff.
ts drashek

posted by : PaulHales, 23 September 2008 Complain about this comment
Acer laptops...

It also doesn't hurt Acer brand any that they are one of the very few offering XP drivers for their laptops. Try buying an HP/Compaq and "downgrading" to XP. It is next to impossible unless you are willing to try homebrewed drivers. 

Thanks ACER for my Extensa 5620z it is a fantastic machine. Running both XP and Vista like a champ. Though I would liked to have seen a better vid card than the Intel 950 series. 

Cheers!

posted by : Teekno, 23 September 2008 Complain about this comment
aboutus
Advertisement
Subscribe to INQ newsletters
Advertisement
INQ Poll

Authorities in several countries raided Megaupload recently, shut down all of its services, seized hundreds of servers and arrested several of its executives on criminal charges.

Do you think the move was justified?