DigiTimes reports ASUS and Gigabyte are putting severe pressure on smaller motherboard players in the Chinese market. This year the two firms are expected to surpass a combined marketshare of 75 percent in the Chinese market, and next year the percentage is expected to rise further to 80 percent.
Motherboard sales are estimated to be down 10 percent this year due to weaker-than-expected demand in China. To stimulate demand, both ASUS and Gigabyte have aggressively cut prices in Europe and China.
Facing the top-2 vendors' fierce competition, Micro-Star International (MSI) and ASRock have both seen their shipments to China decrease dramatically in 2014, while China-based Colorful, Onda, Soyo, Maxsun and Supox are struggling to survive in the market. Third-tier players such as ASL, Yeston, Jwele, Topstar and Jetway may be eliminated from the market in 2015, the sources said.
MSI and ASRock have recently started readjusting their operation teams in China and have been expanding their channel reaches in China and tuning marketing strategies, looking to take back some of their market shares, the sources added.