Asus, Giga-byte JV could stabilise motherboard prices

Two of the world's largest motherboard makers plan to build a new company to combine sales of their branded desktop motherboard and graphics card products.

Two of the world's largest motherboard makers announced plans to build a new company to combine production of their desktop motherboard and graphics card products, they said late Tuesday.

Asustek Computer, the world's biggest maker of computer motherboards, the main circuit board inside a PC that connects all of its components and peripherals, will take over the production of brand name motherboards and graphics cards for Giga-byte Technology. The two Taiwanese companies said the deal will enable them to reduce raw materials costs since they'll be able to buy components in bulk.

The new company is expected to start operations in January of next year.

Users could see the end of rapid price declines for desktop motherboards and graphics cards as a result of the deal.

Despite lower raw material costs, the two companies will hold more market share and work more closely together. That's a big difference from the past, when motherboard makers launched massive price wars against each other in order to gain market share. The price wars often cut into company profit margins, giving users bargain prices.

"We expect the industry to benefit from less intensified price competition, which should improve motherboard makers' revenues and earnings quality," said Henry King [CQ], executive director of technology research for Goldman Sachs (Asia), in Taipei, in a report.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Brand Post

Bitdefender 2019

Taking cybersecurity to the highest level and order now for a special discount on the world’s most awarded and trusted cybersecurity. Be aware without a care!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?