Acer logged best ever biz performance this year, says CBO Sudhir Goel

The company has also recorded 35 per cent year-on-year growth in the first two weeks of the festival season

Personal computer (PC) manufacturer Acer India has recorded its “best ever year” in 2024 so far in terms of business performance and growth on the back of a surge in the consumer segment, a senior executive at the firm said.

 

The 25-year-old company is now aiming to climb the ranks and position itself as the second largest PC manufacturer in India. It is eyeing 18-20 per cent market share.

 

“The year 2024 has been our best year ever. We have surpassed all previous records in terms of revenue and overall growth, which have both grown at over 35 per cent, with one quarter still remaining,” Sudhir Goel, chief business officer (CBO), Acer India, told Business Standard.

 

 

The company has also recorded 35 per cent year-on-year (YoY) growth in the first two weeks of the festival season.

 

“We see ourselves climbing higher in the PC rankings to the second spot. That is our objective for the future. We are targeting close to 18-20 per cent market share in the coming years,” he added. 

 

Growing market share

 

According to Goel, the “higher than anticipated” growth has come on the back of a surge in the consumer segment – primarily small and medium businesses (SMB).

 

“We have been a market leader in the commercial segment, primarily in government, education, and banking, by a large margin… The consumer and SMB segments have been weaker for us. We started focusing on them this year. Our objective was to have a product line in these segments,” he said.

 

India’s traditional PC market, inclusive of desktops, notebooks, and workstations, shipped 3.39 million units in the second quarter (Q2) of calendar year 2024. This is up 7.1 per cent year-over-year (Y-o-Y), according to data from the International Data Corporation (IDC).

 

Acer group stood fourth in terms of market share, recording a healthy growth of 38.3 per cent in the quarter. It led the desktop category with a 27.6 per cent share.

 

Acer managed to fulfil some key government and BFSI orders, seeing a strong position in the commercial desktop category.

 

The continued aggressive push during e-tail sales helped the consumer segment, said IDC analysts.

 

The company’s growth in the consumer segment has come via a focus on first-time PC buyers, which have been a big growth driver for Acer.

 

“We have been very strong, and continue to be, in the gaming segment. We have a strong product line of artificial intelligence (AI) PCs. But we also wanted to provide solutions for first-time users,” Goel said.

 

AI PCs

 

Acer has also recorded consumer interest for AI-powered PCs. However, the lack of use cases for these devices has currently relegated them to a niche subset of the premium segment, Goel claimed.

 

“It is still early days for AI PCs and there is a lot of interest from consumers. But these PCs are currently better suited for consumers looking to upgrade… AI has not reached its full potential yet. Consumers are yet to figure out what they can do with these devices,” he said.

 

Regardless, these devices are likely to catch on over the next few quarters, as more use cases emerge.

 

“It is likely that, in a year from now, AI PCs will be the main solution for consumers,” Goel said.

 

Domestic manufacturing

 

The company had, earlier this year, announced a target of domestically manufacturing 70-75 per cent of its devices sold in India by December. This will be up from 60 per cent. It now plans to achieve this target by the end of March quarter.

 

“We are on our path. There have been some setbacks because of the geopolitical scenario. Hence, we have not reached our target of 70 per cent. But we have grown from the 60 per cent mark, and are somewhere in between. We will probably reach it (70 per cent) by the end of the first quarter next calendar year,” Goel said.

 

Offline retail expansion

 

To reach a wider segment of consumers, the company is heavily investing in category and channel expansion.

 

Between 35 and 40 per cent of Acer’s business comes from commercial deals, with the remainder from the consumer side. Within its consumer business, as much as 60 per cent of sales are driven via offline channels.

 

Goel claimed that Acer’s retail touch points have increased by 70 per cent in 2024, compared to the start of the year. The firm added around 75 exclusive stores this calendar year, and will be adding more stores in the next two and a half months. It also recorded a 25 per cent increase in multi-brand outlets.