DigiTimes writes MSI is feeling pressure from increased competition in the gaming notebook market. The company has done well with its gaming laptops but the strong sales of this small sub-market of the shrinking PC market have attracted many rivals. For consumers this seems to be good news, as the report predicts margins will come under pressure due to lower pricing.
Micro-Star International (MSI) has succeeded in marketing in-house-developed gaming notebooks but has faced increasing competition from notebook vendors, according to Taiwan-based supply chain makers. Competition for gaming notebooks will be more intense in 2016 and profitability will shrink.
Although gaming notebooks offer high gross margins, their overall shipments are still low, making it difficult to expand the market.