A report by DigiTimes notes Asustek will establish a new team to handle the Red Flag series and points out this strategy and points out that this strategy could greatly impact smaller players like MSI, Biostar, ASRock and Colorful. Furthermore, the site also speculates it could force Gigabyte to rethink its pricing strategy in China.
Asustek Computer and Gigabyte Technology each shipped 17 million motherboards in 2015, and with the exception of ASRock, second-tier and third-tier vendors such as Micro-Star International (MSI), Biostar, Elitegroup Computer Systems (ECS) and Colorful all suffered losses in the motherboard business.
Asustek waged fierce competition against Gigabyte in China and shipped 10 million motherboards in the country in 2015, slightly better than Gigabyte's 9.5 million units. To widen its gap with Gigabyte in China, in addition to continuing its existing promotions and aggressive pricing strategy, Asustek also plans to push Red Flag to take over the mid-range and entry-level segments.