Motherboard Shipments Dropped by 20-30% in Q2

Speaking of the PC market, it’s seemingly fallen into a strange circle – manufacturers complain about extended upgrade circle of consumers, while consumers believe new PC products bring no significant performance lift, which results in manufacturers’ reluctance to invest fund and energy on development of something new. The motherboard shipments have seen a 20-30% drop in the second quarter of 2016. As a result, some brands would quit, and some others turn to other businesses. 

Digitimes reports that some motherboard players have seen over 20% decreases and some around 30%. Orders from the retail channel for the third quarter remain weak, which will continue to impact motherboard players’ shipment performance in 2016.

Asus and Gigabyte shipped 17.8 and 17.1 million motherboards in 2015, respectively. With motherboard demand estimated to remain weak in the second half and issues including exchange rate fluctuations, political uncertainties and delay of Intel’s Kaby Lake platyfrom, Asus and Gigabyte are expected to see over 5% on-year declines in 2016 shipments.

China-based Jwele has decided to leave the motherboard market, and some others plan to focus on other businesses, such as Onda, ECS and Biostar. As for those who want to stay, they’ll have to slash prices to boost sales. 

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