Motherboard makers see profit fall by 20 percent this year

Posted on Tuesday, December 18 2012 @ 16:45 CET by Thomas De Maesschalck
DigiTimes reports motherboard makers have seen a relatively big slide in their profits due to increased competition from mobile devices and declining demand. The site heard Taiwanese motherboard players saw their 2012 profits decline by 10-20 percent, and some players even by as much as 40 percent.
Asustek Computer is expected to ship 22-22.2 million motherboards in 2012, down slightly by 4-5% on year, but its profits from the business are expected to drop close to 20% on year.

As for Gigabyte Technology, although the company will enjoy an on-year shipment growth of two million units in 2012, the company is still expected to suffer an on-year drop in motherboard business' profit.

ASRock achieved a gross margin of 19.2% for the first three quarters of 2012, lower than 21.55% during the same period a year ago, while the company's net profit for the period also declined 21.2% on year to only NT$793 million (US$27.29 million).


About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.



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