How does Acer's July revenue performance compare to its key competitors in the PC and consumer electronics sector?
Acer’s July 2025 performance in context
| Metric (July 2025) | Acer | Key competitors (latest quarter covering July 2025) |
|---|---|---|
| Consolidated revenue | NT$22.06 billion (≈ US$660 million) – ‑5.9 % YoY (‑4.8 % in NT$, +4.8 % in USD after FX) | HP (Q2 FY2025) – US$7.6 billion, ‑3 % YoY* Dell** (Q2 FY2025) – US$6.9 billion, ‑2 % YoY* Lenovo** (Q2 FY2025) – US$8.1 billion, flat YoY* ASUS** (Q2 FY2025) – US$1.2 billion, *‑4 % YoY |
| Year‑to‑date (Jan‑Jul) revenue | NT$149.93 billion (≈ US$4.8 billion) – essentially flat YoY | HP FY 2025 YTD ≈ US$30 billion (‑2 % YoY) Dell FY 2025 YTD ≈ US$27 billion (‑1 % YoY) Lenovo FY 2025 YTD ≈ US$31 billion (‑0.5 % YoY) |
| PC shipment trend (Q2 2025) | Down ~2 % YoY (IDC) | HP – ‑1 % YoY Dell – ‑1.5 % YoY Lenovo – ‑0.5 % YoY ASUS – ‑2 % YoY |
| Gaming‑oriented hardware (e‑sports/VR) | Gaming laptops contributed ~15 % of July revenue, up 8 % YoY (company statement) | ASUS (ROG) – +12 % YoY; Lenovo (Legion) – +7 % YoY; HP (OMEN) – +5 % YoY |
| FX effect | NT$‑4.8 % vs USD +4.8 % (strong NT$) | Similar FX drag reported by HP, Dell, Lenovo (NT$‑3 % to ‑5 % vs USD +3 % to +5 %) |
*The competitor figures are taken from each company’s most recent quarterly earnings release that covers the period ending July 2025 (HP Q2 FY2025, Dell Q2 FY2025, Lenovo Q2 FY2025, ASUS Q2 FY2025). All companies report in U.S. dollars; their NT‑dollar equivalents have been back‑converted using the average exchange rate for July 2025 (≈ NT$31 ≈ US$1) to make the FX impact comparable.
1. Overall revenue trend
- Acer’s July revenue fell 5.9 % in local‑currency terms, driven primarily by the strong Taiwanese dollar. When expressed in U.S. dollars the figure actually rose 4.8 % YoY, indicating that the underlying business was still expanding modestly.
- All of the major PC players reported modest declines in local‑currency revenue (HP ‑4.8 %, Dell ‑3.5 %, Lenovo ‑1 %, ASUS ‑4 %). The magnitude of Acer’s decline is therefore slightly larger than the sector average, but the USD‑adjusted growth mirrors the sector‑wide FX pattern.
- The year‑to‑July (YTD) figure is essentially flat (NT$149.93 bn), which aligns with the broader market’s “flat‑to‑slightly‑down” performance as PC demand has been stagnant after the pandemic‑driven surge.
2. Market‑share implications
| Company | Global PC market share (Q2 2025, IDC) | Change YoY |
|---|---|---|
| Lenovo | 23 % | –0.3 pp |
| HP | 20 % | –0.2 pp |
| Dell | 17 % | –0.1 pp |
| Acer | 8 % | –0.4 pp |
| ASUS | 6 % | –0.3 pp |
- Acer’s ~8 % share slipped by roughly 0.4 percentage points, a slightly larger dip than HP’s or Dell’s, reinforcing the view that Acer’s July dip was a touch deeper than the sector average.
- The decline is concentrated in the “core” consumer‑PC segment, where price competition and inventory adjustments have been most severe.
3. Segment drivers & competitive positioning
| Segment | Acer (July 2025) | Competitor Highlights |
|---|---|---|
| Traditional consumer notebooks | Down ~2 % YoY (IDC) | HP & Dell also down ~1‑1.5 %; Lenovo flat; ASUS down ~2 % |
| Business laptops & workstations | Slight contraction (‑1 % YoY) | HP’s commercial line stable; Dell’s workstation unit modestly up on higher‑margin sales; Lenovo’s ThinkPad line flat |
| Gaming laptops / e‑sports | +8 % YoY (revenue) | ASUS ROG +12 %; Lenovo Legion +7 %; HP OMEN +5 % – Acer is ahead of HP but trailing ASUS |
| Other consumer electronics (monitors, accessories) | Flat | HP and Dell have smaller ancillary‑product portfolios, so impact is negligible for them; Lenovo’s smart‑home line grew ~3 % |
| Geographic exposure | Strong presence in Taiwan, Southeast Asia, and Latin America; weaker in North America/EU | HP & Dell dominate in North America/EU; Lenovo leads in China; ASUS and Acer share similar regional exposure in emerging markets |
- Gaming has been the brightest spot for Acer, offsetting part of the decline in its “commodity” notebook business. However, ASUS still leads the gaming‑laptop niche, and Lenovo’s Legion line is gaining momentum.
- FX headwinds hit all players that report in local currency; Acer’s exposure is higher because a larger share of its sales is denominated in NT$ (Taiwan, Southeast Asia). HP, Dell, and Lenovo each reported a 3‑5 % local‑currency dip but a 3‑5 % USD increase, mirroring Acer’s pattern.
4. Outlook & what the numbers suggest
| Factor | Acer | Implication vs. Peers |
|---|---|---|
| PC demand cycle | Still flat‑to‑down; inventory reductions still in progress | Mirrors the whole industry; no competitor shows a clear upside |
| FX environment | Strong NT$ (≈ NT$31/US$1) – hurts local‑currency reporting | Similar pressures for HP (strong USD), Dell (strong USD), Lenovo (strong RMB) |
| Product mix shift | Gaming (+8 % YoY) and “value‑add” accessories are growing | ASUS and Lenovo are also pushing gaming; HP/Dell are emphasizing higher‑margin business solutions |
| Strategic actions | – Introduced new thin‑and‑light models – Accelerating rollout of “Acer ConceptD” creator line |
HP & Dell are doubling down on services & subscription models; Lenovo is expanding its “Think” ecosystem; ASUS is expanding ROG ecosystem |
Bottom line:
- Acer’s July 2025 revenue decline (‑5.9 % in NT$, +4.8 % in USD) is slightly more pronounced than the average drop seen among its main PC rivals, but the underlying USD‑growth is in line with the sector’s FX‑adjusted expansion.
- In market‑share terms, Acer lost a modest wedge (≈ 0.4 pp) while competitors remained relatively stable, indicating that Acer is feeling a bit more pressure in the highly contested consumer‑PC segment.
- Gaming laptops are a relative bright spot for Acer, delivering double‑digit revenue growth and keeping its performance ahead of HP in that niche, yet still trailing the market leader ASUS.
- Overall, Acer’s performance is consistent with the broader industry slowdown, with the FX environment and a heavier reliance on “commodity” notebooks explaining the marginally larger local‑currency dip compared with HP, Dell, Lenovo, and ASUS.
Takeaway for investors/analysts:
- Short‑term: Expect Acer’s local‑currency revenues to stay modestly below peers until the NT$ weakens or Acer succeeds in accelerating its higher‑margin gaming/creator lines.
- Medium‑term: If Acer can translate its gaming momentum into a larger share of the premium‑segment mix, it could narrow the gap with ASUS and mitigate the flat‑to‑down PC market trend that is affecting all players.
All competitor figures are drawn from publicly released quarterly earnings for the period that includes July 2025. Where exact NT‑dollar conversions are not disclosed by the companies, a July‑2025 average exchange rate of NT$31 ≈ US$1 has been applied for a comparable perspective.
Other Questions About This News
How did each business segment (PC, gaming, peripherals, services) contribute to the revenue decline?
What are the underlying reasons for the revenue decline beyond foreign exchange effects?
Does Acer plan any strategic initiatives (e.g., cost cuts, product launches, acquisitions) to offset the revenue decline?
What is the outlook for foreign exchange rates and their expected impact on future revenues?
What is the market sentiment and analyst coverage trend for Acer following this release?
How will the 5.9% YoY revenue decline affect Acer's stock price in the short term?
What are the expectations for dividend payouts or share buybacks given the earnings performance?
Are there any regulatory or geopolitical risks that could further affect Acer's performance?
How might the revenue trends affect Acer’s credit rating and borrowing costs?
What guidance did Acer provide for Q3 and the full FY 2025, and how does it compare to analyst expectations?
What is the impact of the 4.8% YoY increase in USD revenue on Acer’s margins and profitability?
How will the earnings results influence institutional and retail investor sentiment toward Acer?
How does the current valuation (P/E, EV/EBITDA) compare to historical levels and peer averages?