Acer Plots Price Hikes to Offset Rising Hard Drive Costs

Paul Lilly

As hard drive component suppliers struggle to recover from recent flooding in Thailand, Acer revealed during an investor conference that it has no choice but to charge more for its products. Acer sees little to no alternatives when the cost of hard disk drives spikes by as much as 20 percent, costs that are ultimately passed on to the consumer.

"We have seen a hard disk price rise so we have started to raise prices on future orders to cope with the rising cost," Acer President Jim Wong said, according to Reuters .

Acer isn't trying to take advantage of the situation, and Mr. Wong says he's been communicating with component suppliers on a daily basis to keep tabs on what's going on in the supply chain, and also is in search of alternative suppliers far removed from Thailand's flooding.

Acer's revenue and profits are both down compared to last year, but were higher than expected "due to stronger PC shipments," Acer said (PDF) . The company addressed a number of topics in its third quarter financial statement, saying quarterly tablet shipments were slightly lower than the 800,000 shipped in 2Q, though not enough to disrupt the company's full-year guidance of 2-2.5 million units.

"Acer will continue to produce Android tablets with better integration to the Acer Cloud and the launch of Windows 8 will provide a great opportunity to develop tablet devices with higher productivity," Acer said (PDF) .

The company also plans to launch its next generation Ultrabooks in early 2012 and expects the penetration rate for Ultrabooks next year to be anywhere from 25 percent to 35 percent.

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