Pressure Is On Motherboard Makers

[SteelCrysis]

http://www.digitimes.com/news/a20150623PD207.html

Elitegroup Computer Systems (ECS) has announced that it will no longer actively market own-brand DIY motherboards but will undertake ODM/OEM production if clients have demand, and this is the equivalent of a gradual withdrawal from the global own-brand DIY motherboard market, according to Taiwan-based supply chain makers.

This is because global demand for DIY motherboards is shrinking and ECS has been faced with increasing price competition from Asustek Computer and Gigabyte Technology, the two largest Taiwan-based vendors, especially in the China market, the sources said. Under the situation, another Taiwan-based DIY motherboard vendor is expected to follow suit by quitting the own-brand market in 2016, the sources indicated.

ECS has shifted its business focus from DIY motherboards to ODM production of notebooks and tablets as well as production of mini-PCs for own-brand sale, the sources said.

ASRock, Micro-Star International and Biostar Microtech International, three other Taiwan-based DIY motherboard vendors, have encountered the same situation as ECS, the sources noted.

ASRock focuses on marketing of mid-range and high-end DIY motherboard models in 2015 and, in addition, has extended own-brand production to servers and industrial motherboards, the sources said. Micro-Star and Biostar are expected to ship about 6.0 million DIY motherboards and below 3.0 million units, respectively, in 2015, the sources indicated.