In response to Han-Ching Chang’s blog post about the competition between Apple and Acer, I feel that Apple, currently, still have the first-mover advantage. The basis for this competition is that Acer has launched a lighter and thinner laptop (Aspire S3) than Apple’s Macbook. More importantly, Acer’s price is below that of Apple’s. This puts the Aspire S3 in substitute competition with the Macbook.

Since the Macbook is already established as a light and thin laptop, Apple has gained a strong foothold targeting these customers. Prior to the Aspire S3, Apple was able to set high prices and people were still willing to buy the product because of the benefits that a light laptop could give. With the introduction of the Aspire S3, Apple’s market share in the lightweight laptops category will be reduced. Further reduction is expected as Lenovo is also planning to produce lightweight laptops as well.

I agree with Han-Ching that the more “cost-conscious” customers will gravitate towards Acer’s product; however, those who buy Apple products for the name and prestige will without a doubt remain faithful to Apple.