Acer pioneer says US can't do low price PC

Acer's creator and former chief Stan Shih told Taiwan's Commercial Times on Tuesday that he doesn't expect US PC makers to survive the next 20 years. He believes the tendency towards budget PCs will continue on for "coming years" and that US companies don't have a fundamental grasp of how the market works. Lower-cost southeast Asian brands like Acer have an inherent edge as a result.

"US computer makers just don't know how to put such products on the market," Shih said, comparing American PC builders to their gutted TV brands like Zenith, which was bought out by LG in 1999.

The comments are supported by Acer's most recent results, which on the world stage put it above Dell in fall 2009 PC shipments. Observers say the company could potentially surpass HP as the top-selling label as early as this year, though this depends on sustained demand for netbooks and Acer's overall line.

Doubts are cast on Shih's views by the performance of some US brands. Although HP growth is slowing and Dell has been on the decline, Apple continues to grow despite having an average selling price almost three times higher than its competitors. Apple has had to respond to the market with more economic systems but for more than a year has effectively controlled US retail notebook sales above $1,000, hinting that it's continuing to grow with its high-end strategy.

By Electronista Staff