DigiTimes received notice that Asustek has recently slashed the prices of its entry-level and mid-range motherboards by at least 10 percent in the Chinese market. Rival MSI has already followed suit, but Gigabyte is still monitoring the development. The article explains ASUS' intention may be to widen the gap with its competitors, although other sources believe the price cuts may be mainly aimed at digesting its inventory and that the price war may end shortly.
Taiwan-based Elitegroup Computer Systems (ECS) and ASRock, which mainly target China's entry-level motherboard market, as well as China-based second-tier players, are expected to bear the brunt of the price competition, the sources noted.
Having seen its branded motherboard shipments to China tied with Gigabyte's in the first quarter of 2010, Asustek has decided to cut its motherboard prices in order to widen its gap gap with competitors, the sources noted.