Motherboard players to see shipment drops in 2H12

Monica Chen, Taipei; Joseph Tsai, DIGITIMES [Friday 21 September 2012]

Seeing weak motherboard demand despite the upcoming National Day holidays in China and Europe's year-end holiday season, motherboard makers expect their shipments in the second half of 2012 to suffer a decline compared to the first half, and have also recently adjusted their shipment forecasts for the year, according to sources from motherboard players.

In the past, both holidays used to significantly stimulate motherboard demand and helped raise motherboard players' shipments in third and fourth quarters, but in 2012, the holidays have not yet provided any benefit toward motherboard demand in the second half.

The sources pointed out that Apple's iPad, in addition to notebooks and desktops, have strongly impacted the PC DIY market and could result in an on-year sales drop of more than five million motherboards in the branded motherboard market in 2012.

Since competition in the motherboard market is mainly over mid-range and entry-level models, pricing is key, and players that are unable to endure price competition are seeing their shipment performance drop gradually.

Due to the strong competition and weak motherboard demand, Asustek Computer and Gigabyte Technology have recently reduced their shipment forecasts for 2012 to 23.2 million and 19 million units, respectively, for 2012 while ASRock will ship eight million units, the sources noted.