PC motherboard sales slide further ahead of Vista

The PC industry could see the worst fourth quarter for sales of desktop motherboards since 1999

Sales of motherboards used in desktop PCs continue to decline ahead of the launch of Microsoft's new Windows Vista OS, a sign that could foretell bargains for users in coming months.

Slowing demand from PC users ahead of the launch of Vista was the main culprit for falling motherboard sales, while shortages of key components such as low-end microprocessors were also a factor, executive director of technology research for Goldman Sachs (Asia), Henry King, said in a report published this week.

The analyst warned that his view of motherboard shipments haddimmed further since he wrote a few weeks ago that demand for desktop PC motherboards was falling off a cliff.

He further revised down his motherboard shipment target ahead of the important holiday season. October shipments will likely dive 6 per cent compared to September, and shipments will drop further in November, King predicts. Fourth quarter shipments overall should limp by with 5 per cent growth, compared to normal growth of up to 19 per cent.

"This would be the worst [fourth quarter] we have seen since we started to track motherboard data in 1999," King said.

As motherboard inventories pile up, King claims a price war will begin.

"Our supply chain checks indicate that both inventory build-up and price competition are imminent," he said.

Unlike desktops, demand for laptop computers remains strong, he said. Goldman Sachs also believes Vista will boost PC sales over the next few years. In the near term, however, users are shying away from new purchases in the months leading up to the launch of the new OS.

King is a long-time IT industry watcher, and being based in Taipei gives him a unique view of global trends. Taiwanese companies, including Asustek Computer, Micro-Star International, and Hon Hai Precision Industry, dominate the global market for computer motherboards with over a three quarter share. They report revenue figures each month in accordance to stock market regulations, and often give out motherboard shipment data as well.

None of the major Taiwanese motherboard makers has reported October revenue yet.

Both of the major microprocessor makers lowered prices on some products in late October. Intel dropped prices on a host of Pentium D processors aimed at the desktop market, according to a new price list published October 23 on its website. Advanced Micro Devices' latest processor price list from October 30 shows slight adjustments for some desktop processors.

Microsoft also in late October announced a plan to give users who buy PCs loaded with Windows XP this holiday season a coupon for free or discounted upgrades to Vista when it ships next year.

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

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

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.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?