Dell Takes Acer Seriously
According to Dell’s CEO Kevin Rollins, Dell considers Acer as a significant threat given Acer’s demonstrated adaptability and “…well-built supply integration in the PC industry”. Rollins believes that Acer has the potential to become a serious competitor for Dell in the near future. However, he still believes that Dell’s direct-sales model provides Dell an advantage over Acer in the Acer-Pacific market:
Rollins believes that Dell’s direct-sales model, in contrast to Acer’s channel marketing strategy, will definitely help its sales in the Asia-Pacific PC market and worldwide consumer PC segment. Dell will continue to use its direct sales model to expand its presence in the Asia-Pacific region, said Rollins.
Well, I’d say that it’ll take Acer quite a few more years to be real competition for Dell in the overall PC market. After all, while Acer has recently moved several notches closer to Dell in the notebook market, Acer is still far away in the desktop market.
[News via Digitimes]
February 1st, 2006 13:53
Hi!
Though I am no expert, I do agree that Acer is a long way off.
Well, I have read in so many articles that dell is having a problem with the Asia-pacific market with its Direct Business Model.
I think a lot of asian countries are still reluctant to buy on-line or through the phone.
I think Acer can have an edge in this aspect.
February 1st, 2006 18:23
Yeah, I agree that the “buy online” aspect of Dell’s direct business model throws Asians off quite a bit. From experience, not many Asians will buy anything worth more than a few hundred dollars without going face-to-face with a salesperson.
Yes, Acer does have an edge in this aspect. But I think the main reason it has done so well in the the Asia-Pacific market is its highly aggresive pricing. Even with the discount coupons Dell constantly pushes in our face, Acer’s price is still the lowest of the lot.
February 3rd, 2006 10:06
[...] Digitimes reports that Dell was the top LCD vendor in 2005, shipping a total of 20 million units. Dell accounted for 19 percent of the global LCD market, far ahead of Acer – which was recently acknowledged as a strong competitor for Dell by CEO Kevin Rollins – at only 7.2 percent. [...]
February 7th, 2006 05:49
[...] More interestingly, Digitimes reports that Acer chairman J.T. Wang said that “Acer’s performance should not be judged on par with Dell…” and that “Acer still has a long way to catch up with the US vendor…” in the wake of Dell’s statement that it was taking competition from Acer seriously. Of course, I presume that the short term fall in Acer’s price during the recent Chinese New Year period after Dell’s statement probably spurred Mr. Wang on as well. [...]
February 19th, 2006 01:29
[...] This assertion stems all the way from Hewlett-Packard (HP)’s recent resurgence in PCs, servers and even printers to Dell’s dependence on a slowing PC market. Dell’s lack of success in breaking into the consumer products market (e.g. Dell’s almost complete pull-out from the MP3 player market dominated by Apple) is probably another contributing factor. And let’s not forget the other brand-names vying for a piece of Dell’s PC market share (Read: Acer). [...]