MSI is facing a conflict between its brand and OEM business, according to Henry Lu, vice president of MSI. The company's brand business improved significantly in 2009, but OEM orders for notebook and graphics cards saw a serious drop due to clients' concerns about the rise of MSI's brand business, and shipments are expected to drop further this year. To counter the loss of OEM orders, MSI plans to aggressively ramp up its brand business.
Lu pointed out that the company shipped less than two million notebooks in 2009, less than company's expectations in early 2009, but thanks to the stable profits from in motherboard business, still managed to remain profitable for the year.
Although the company's notebook business did not perform well in 2009, about 70% of shipments were own-brand-based, indicating that the company's brand business improved significantly, Lu noted.
However, OEM orders for notebook and graphics cards saw a serious drop in 2009 due to the clients' are concerns about the rise of MSI's brand business. Shipments are expected to drop further in 2010, Lu added.