Acer predicts PC price rises this year

The good news for Acer - the outfit on course to become the world's biggest PC maker by 2012 - is that computer prices are likely to rise this year, the firm said today.

What's good news for Acer is bad news for the rest of us, of course.

Pressured to have a guess at the size of any price rises, Walter Deppeler, Senior Corporate VP at the firm had a stab at between 10 and 12 per cent.

"A stronger US dollar will influence average selling prices, Deppeler said. "Prices should go up in 2010 – the first year ever in the industry."

Deppeler's colleague, German country manager Stefan Engel, explained that 75-80 per cent of the price of a notebook is determined by the strength of the dollar. And with the rise of the dollar, prices in the Eurozone are likley to be pushed up.

While this is bad news for consumers, Acer is looking forward to improved financial performance as a result. The rate of change in the iT industry has meant that, for the past 20 years, average selling prices traditionally fall year on year as new technology tips up to push the price of existing products down. Economies of scale also kick in as manufacturing volumes increase.

But the strength of the dollar against the Euro - and the pound - is likely to push up prices across Europe, Acer thinks.