Motherboard manufacturers suffer 20% average profit decline in 2012

The PC DIY community is facing a decline in demand, thanks to the increasing competition from notebooks and tablets. While motherboard manufacturers are in a cut-throat competition against each other to grab a market share, it seems that it will get more fierce as the reported profits in 2012 shows a decline of 10-20% a year whereas some companies suffered as low as 40% down compared to other competition.

Asus are expected to ship about 22-22.2 million motherboards in 2012 with a sharp drop of 20% in profits. Gigabyte, although enjoyed the shipment of 2 million more motherboards compared to last year, the company is expecting to suffer in business profits. As for ASROCK, it achieved a gross margin of 19.2% in the first 3 quarters of 2012; lower than 21.55% compared to the same period last year.

Source: Digitimes