Motherboard sales expected to fall in 2H 2012

Sources from motherboard makers revealed to DigiTimes that shipments of motherboards are expected to suffer a decline in the second half of this year compared to the first half. Demand is weaker than anticipated, and the desktop PC market is seeing increased competition from other product segments like notebooks and tablets.

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.

According to the site, ASUS and Gigabyte have reduced their shipment targets for 2012 to 23.2 million and 19 million units, respectively, while ASRock's revised target is 8 million units.