Sunday July 10, 2016

Motherboard Players See 20-30% Drop In 2Q16 Shipments

Sources suggest that companies are seeing as much as a 30% decline in motherboard shipments due to weakened demand and other issues that include the delay of Intel's Kaby Lake platform. The good news for us is that prices are getting slashed in an attempt to boost sales.

Because of weak demand, motherboard players have been slashing prices to boost sales. Asustek is currently having advantages in the price competition because of its deep pockets. In addition, motherboard players have also been increasing their sales bonuses to their distributors and channel retail partners in China to encourage them to place orders. However, the risk of creating bad debts has been rising and a few cases have already occurred recently. Motherboard players have also reduced their shipment forecasts for 2016. Asustek and Gigabyte are looking to ship 17 million motherboards, Micro-Star International (MSI) 4.5 million, ASRock four million, China-based Colorful 1.9-2 million, ECS less than two million and Biostar less than one million.