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Acer and Asus see profits evaporate due to weak euro

Posted on Monday, March 29 2010 @ 17:01:22 CEST by


DigiTimes reports Taiwanese-based vendors like Acer and Asustek expect lower profits this quarter due to the weakening of the euro. The site heard vendors will need to increase notebook prices in order to maintain their profits, but Acer reportedly adopted a strategy of downgrading its notebook's specifications instead of raising its prices.
The euro has declined against the US dollar from US$1.5 to 1 euro in December 2009 to US$1.32 to 1 euro recently. During the same period, the euro has also dropped against the New Taiwan dollar.

The appreciation of the Taiwan currency against the euro means that Taiwan-based vendors will see exchange losses from payments from Europe, the sources noted.

A stronger US dollar against the euro also means that the costs of notebooks shipped to Europe have become higher because of the exchange rate differences, because the costs of notebooks are calculated in the US dollar, the sources noted.



 



 

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