Sources at motherboard makers told DigiTimes that ASUS and Gigabyte are expanding their motherboard price competition to Europe as Chinese demand is falling short of expectations. The price war is expected to put strong pressure on ASRock and MSI, which sell a large part of their motherboard volume in Europe. The site claims some smaller players may not be able to survive the price war.
Since the top-two players have been expanding their presence in the motherboard market, other players' gaps with the top-two are expanding quickly. To avoid fierce competition in China, many players have chosen to focus on markets such as Southeast Asia, Latin America and Europe.
Asustek, which has strong brand recognition in Europe, has been offering attractive prices for its Intel Z97, X79, Z87 and H81 as well as AMD A88, A78 and A58 motherboards.
Since MSI and ASRock both failed to achieve their shipment targets for the first half, the two players' shipments and profits may face further declines if they are able to defend from Asustek and Gigabyte's price competition in Europe.