A price war launched in the first quarter by the top-four Taiwan motherboard makers – Asustek Computer, Gigabyte Technology, Micro-Star International (MSI) and Elitegroup Computer Systems (ECS) – and the EMS giant Foxconn Electronics is expected to continue in the second quarter, as makers are striving to maintain their market shares amid slow demand, according to market sources.

The price war is set to continue as makers anticipate that combined motherboard shipments from the top-four makers (excluding Foxconn) are expected to decline 10% sequentially in the second quarter after their combined shipments dropped 10.8% sequentially to 28.78 million units in the first quarter from 32.25 million units a quarter earlier, the sources indicated.

While Asustek and Foxconn may be able to safeguard their gross profit margins with economic scale of production, Gigabyte, MSI and ECS are expected to see their ASPs (average selling prices) and gross margins wane amid the competition, the sources asserted.

By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved