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Why the prices of Google's cheap Chromebooks will rise in the long term




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Jason Chen, CEO of Acer, gesturing during a press conference at IFA Consumer Electronics in Berlin. (Krizstian Bocsi / Bloomberg)

© 201

4 Bloomberg Finance LP

Chromebooks, Google's light-weight PCs powered by Google's Chrome operating system, have made a name for themselves since their launch in 2011. The price per PC is $ 200, and one model costs $ 180 in the US According to this tech media report, CNET sees the Chromebook as a "cost-effective, optimized alternative to a Windows laptop or Macbook."

In the longer term, Chromebooks are becoming more expensive Acer, according to the pioneering developer: That's because they Take on more functions, including touchscreens, and address markets with the money they spend, rather than just schools, while Google updates the operating system.

"My Expectations for the next two years that Chromebook prices are likely to rise as vendors add some premiums (units) to their portfolios, while more experimentation has been made with form factor and touch screen user experience innovations, "says Dr. Ishan Dutt, analyst of technology research firm Canalys.

Acer calculates above average

According to a company spokesman in the suburb of Taipei, the average selling price of Acer is already above the market average. According to spokesman Acer is beginning to broaden its "innovation," and public schools, which are the major customers of the Chromebook so far, want more than cheaper base models.

Acer describes this as "premium" A pair of Chromebooks, the 714 and the 715, which Acer unveiled in April at a New York event. They are equipped with backlit keyboards, and the 715 has a special numeric keypad. Both models are aimed at business customers, it said in a statement by Acer. They sell for $ 499 when they hit the market in July, CNET says.

More about Forbes : How Acer Became a Top Seller of Chromebooks

Acer joined with Google in 2008 to develop the original notebooks based on the fast, Cloud-based Chrome systems run by the Silicon Valley giant. Acer, the world's No. 6 PC vendor since the first quarter of 2019, had the largest share of the Chromebook market among vendors in 2017, although its 26% share last year was behind HP's 31%, according to Canalys data ,

Acer announced a net profit of NT $ 706 million ($ 22.8 million) on May 8 with sales of NT $ 54.7 billion and an increase in the "average selling price" of its PCs in various categories on. Acer does not announce sales of Chromebooks, but according to this report, PC subclass sales increased 30% from January to September 2018 over the previous year. Acer boss Jason Chen called Chromebooks an important source of revenue alongside gaming PCs. [19659004] Acer as Trendsetter

Acer is not the only company to expect a price increase for Chromebooks, analysts say. With the exception of units that lower the quality of certain school specifications, "Chromebook brands will increase product specifications to extend their reach from the education market to the consumer market with higher prices," said Sagitta Pan, a leading industry analyst with Market Intelligence & Consulting Institute in Taipei. Basically, business users can afford to spend more.

According to Dutt, Chromebook prices will continue to rise as a result of Google's improvements to ChromeOS to reach non-school-age users. In 2017, Chromebooks accounted for 60% of all PCs sold to American schools.

Chromebooks, of which 15 million were sold across brands in 2018 and are predicted to have sold at least 13 million this year, will continue to reach schools, but will increasingly appeal to other users, predicts Linn Huang, research director at technology market analysis firm IDC. "Moving the market mix away from education, traditionally bought in the bargain industry, to other segments pulls up the entire product mix and leads to constant pricing," says Huang. "In education too, we're seeing schools switching to … features like convertibility and touch."

Google Inc. Chromebook laptops are displayed in front of a company logo sign on the company's Asia site. Pacific Headquarters in Singapore in November 2016. (Ore Huiying / Bloomberg)

© 2016 Bloomberg Finance LP

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Jason Chen, CEO of Acer, gestures during a press conference at the IFA Consumer Electronics Fair in Berlin ( Krizstian Bocsi / Bloomberg)

© 2014 Bloomberg Finance LP

Chromebooks, Google's lightweight PCs with Google's Chrome operating system, have made a name for themselves since their launch in 2011. Prices per PC are at $ 200 and a model currently cost $ 180 in US stores for this Tech Media Report, and CNET, another tech news site, calls the Chromebook a "cost-effective, optimized alternative to a Windows laptop or Macbook "

In the longer term, however, Chromebooks are becoming more expensive, according to pioneering developer Acer, because they're taking on more features, including touchscreens, and turning markets into money they can spend rather than just schools. At the same time, Google is upgrading the operating system.

"My general expectation for the next two years is that Chromebook prices are going up as vendors are now adding some premiums (units) to their portfolios. While more has been experimented with form factor innovations and touch screen user experiences, "said Ishan Dutt, an analyst with technology research firm Canalys.

Acer praises above average

The average selling price of Acer is already above that of Acer's market average, says a company spokesman on the suburbs of Taipei. According to spokesman Acer is beginning to broaden its "innovation," and public schools, which are currently the Chromebook's key customers, are demanding more than cheaper base models.

Acer calls this "premium" A pair of Chromebooks, the 714 and the 715, which Acer unveiled in April at a New York event. They are equipped with backlit keyboards, and the 715 has a special numeric keypad. Both models are aimed at business customers, it said in a statement by Acer. They sell for 499 US dollars when they reach the markets in July, says CNET.

More on Forbes : How Acer, a weakening PC brand, became a hit for Chromebooks

Acer joined with Google in 2008 to develop the original notebooks running on the fast, cloud-based Chrome systems of the Silicon Valley giant. Acer, the world's No. 6 PC vendor since the first quarter of 2019, had the largest share of the Chromebook market among vendors in 2017, although its 26% share last year was behind HP's 31%, according to Canalys data ,

Acer announced a net profit of NT $ 706 million ($ 22.8 million) on May 8 with sales of NT $ 54.7 billion and an increase in the "average selling price" of its PCs in various categories on. Acer does not announce sales of Chromebooks, but according to this report, PC subclass sales increased 30% from January to September 2018 over the previous year. Acer boss Jason Chen called Chromebooks an important source of revenue alongside gaming PCs. [19659004] Acer as Trendsetter

Acer is not the only company to expect a price increase for Chromebooks, analysts say. With the exception of units that lower the quality of certain school specifications, "Chromebook brands will increase product specifications to extend their reach from the education market to the consumer market with higher prices," said Sagitta Pan, a leading industry analyst with Market Intelligence & Consulting Institute in Taipei. Basically, business users can afford to spend more.

According to Dutt, Chromebook prices will continue to rise as a result of Google's improvements to ChromeOS to reach non-school-age users. In 2017, Chromebooks accounted for 60% of all PCs sold to American schools.

Chromebooks, of which 15 million were sold across brands in 2018 and are predicted to have sold at least 13 million this year, will continue to reach schools, but will increasingly appeal to other users, predicts Linn Huang, research director at technology market analysis firm IDC. "Moving the market mix away from education, traditionally bought in the bargain industry, to other segments pulls up the entire product mix and leads to constant pricing," says Huang. "Also in education, we see schools improve on … features such as convertibility and touch."

Google Inc. Chromebook laptops are displayed in front of a company logo sign on the company's Asia site. Headquarters of Pacific in Singapore in November 2016. (Ore Huiying / Bloomberg)

© 2016 Bloomberg Finance LP


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