AI PC sales have so far failed to live up to the initial hype, but Acer chairman and CEO Jason Chen predicts that the devices will reach the pricing sweet spot next year to trigger replacement demand.
Chen said AI PCs have so far generated little sales momentum because their prices have yet to reach the sweet spot. However, the Acer chairman expects AI PC prices to drop to the mainstream range in the third quarter of 2025.
Supply chain sources have also blamed the AI PCs' failure to stimulate replacement demand partly on the overall weak economy —judging from the lukewarm sales for year-end shopping— and partly on the devices' lack of wow factors.
Chen, speaking to the press during a company event, said AI PCs are steadily approaching a price level that will make them mainstream products in the market.
Replacement demand to arrive in 3Q25
Chen stated that any PC products, including AI PCs, have to reach the mainstream US$699-799 range before sales can heat up, adding that AI PC prices are expected to reach that range in the third quarter of 2025. He said Microsoft's Copilot+PC has received positive reviews, but its US$1,200 price is deterring consumers.
Chen said the predicted arrival of the sweet spot, the third quarter of 2025, is based on the trend of semiconductor development.
Nevertheless, Chen declined to provide an outlook for the fourth-quarter 2024 peak season. He only said that the company is still working hard for the peak season, and will continue to do so in 2025.
The supply chain is facing a lot of uncertainty arising from US President-elect Donald Trump's plans to raise tariffs for imports from multiple countries. The sources said that higher tariffs would send consumer electronics prices rising to reflect the increased manufacturing costs, which would fuel inflation and deter consumers from spending.
Acer not rushing into decisions over US tariff threats
The Acer chairman would not comment on the possible impacts of rising US tariffs, but he said that as variables might still appear in the weeks leading to the presidential inauguration in January 2025, it would be pointless to make preparations in response to what Trump is saying at the moment.
He pointed out that some manufacturers had moved their productions to Mexico in order to diversify risks, only to be threatened now with higher tariffs for imports from Mexico.
He said companies need flexibility to react to changes, and should not rush into decisions in the next 50 days or so.
The global supply chain will definitely be reshaped, with Acer choosing to develop short supply chains. Acer has assembly lines for local production in India and Indonesia, Chen added.
Article translated by Rodney Chan
