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ASUS significantly cuts Q1 2012 motherboard production

Posted on Tuesday, January 03 2012 @ 21:30:01 CET by

DigiTimes claims Asustek has cut its motherboard production volume from 5-6 million units to only 3-3.5 million units in Q1 2012 because the company still has an inventory of about 1 million motherboards from the final quarter of 2011.
The sources noted that Asustek still had an inventory of about one million motherboards from the fourth quarter, although the issue will not affect the company's sales target of the first quarter of 2012, the company's upstream component partners may all be affected.

Asustek's production cut has also affected its chipset orders to CPU makers. The motherboard company's chipset orders to Intel in the quarter dropped 2.5-2.8 million units with orders to AMD dropped 500,000-700,000 units.

In the fourth quarter of 2011, despite most motherboard players focusing on reducing inventory to counter weakening demand, Asustek maintained its production volume, which piled up its inventory level; as a result, compared to Asustek, the other motherboard players are expected to enjoy on-quarter shipment growths from 5-10% in the first quarter.



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