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Taiwanese electronics brand Acer worried about India-China conflict

Product demand in Thailand, Malaysia, Philippines picking up but India, Indonesia still cause for concern

Andrew Hou, Acer president for Pan Asia Pacific Operations 

Andrew Hou, Acer president for Pan Asia Pacific Operations  (CNA photo)

TAIPEI (Taiwan News) — The border conflict between India and China could affect consumer sentiment during the third quarter of the year, Taiwanese electronics brand Acer Inc. (宏碁) said Wednesday (June 24).

The Wuhan coronavirus (COVID-19) pandemic virtually destroyed consumer demand during the first half of the year in countries like Indonesia, Thailand, and the Philippines, leading Acer to focus on business customers, according to the company’s president for Pan Asia Pacific Operations, Andrew Hou (侯知遠).

Looking ahead, countries with a large population, such as India and Indonesia, offer a significant level of uncertainty. However, other Southeast Asian nations, such as Thailand, Malaysia, and the Philippines, are on the road to recovery, CNA quoted Hou as saying.

The recent confrontation on the border between India and China might cast a shadow on consumer demand in the former, the Acer executive said. He added that with more consumers working from home, many government departments have decided to postpone spending.

During the second quarter, Acer saw its performance in India dip by 10 percent. Therefore, an expected return to normalcy for the third quarter might be imperiled by the dispute with China, Hou said.

The computer brand is also focusing on new side activities, such as Acer eStore, which saw its business soar by 472 percent in the second quarter, and Highpoint Service Network Corp., which has repair services at 1,400 locations in more than 20 countries in the Asia Pacific.