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Motherboard makers see profit fall by 20 percent this year

Posted on Tuesday, December 18 2012 @ 16:45:47 CET by

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).



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