Tough times hit motherboard makers

AVERAGE SELLING prices of motherboards are dropping through the floor, a report said, confirming reports from distributors and other companies here that times are tougher than ever before.

According to Digitimes, selling prices slumped by 18% in November, with Asustek reporting a $65 ASP for its boards in Q3, compared to $90 in Q1 of this year.

Indeed, said Digitimes, the slump in prices has forced 80 per cent of the second tier makers to start using Elitegroup to supply their needs.

Our sources here in the UK tell us that while the chip vendors are reporting record sales, pushing motherboards into the market is an increasingly thankless task in terms of profit and revenue.

These products have turned into commodities - a trend that's been on the cards for two to three years now. One distributor told the INQUIRER earlier this week that firms which haven't diversified their product lines sufficiently face being murdered in 2004. µ

L'INQ
Dodgy Times for mobo makers