Asustek Computer's competition with Gigabyte Technology over the motherboard business is growing fiercer as the two firms' shipment gap will only be 100,000 units, according to sources from channel retailers. Asustek shipped 10.4 million motherboards and Gigabyte 10.3 million units in the first half of 2014.
Since the two firms have already widened their gaps with other motherboard competitors and are expected to maintain stable shipments and profits, some of the small motherboard players may quit the market in the near future, the sources said.
Unable to match Asustek and Gigabyte, small players such as ASRock and Micro-Star International (MSI) have already turned to snatch share from even smaller players.
The largest China-based motherboard player Colorful has recently started a wave of price cuts, forcing other non-top-4 players to follow suit and compete. The competition is expected to greatly impact non-top-4 players' profitability.
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