Motherboard price wars expected to continue

Motherboard price wars expected to continue

The local channel has claimed Asustek Computer's takeover of Gigabyte Technology will not stop aggressive pricing across motherboards and graphics cards.

US news reports suggested the combining of the world's two largest motherboard makers could see the end of rapid price declines for desktop motherboards and graphics cards. Previously, the parties would use pricing to snatch up marketshare. The loss of one player could steady this pattern and help bring margin back into the black.

But Optima product marketing manager, Ole Mortensen, said the two would continue to try and drive costs down.

"Considering they are two of the biggest multinationals, they can leverage off each other," he said.

Optima deals with both companies for components and would be for the foreseeable future, Mortensen said. The new Asustek-Gigabyte hybrid isn't expected to begin operations until around January next year.

Pioneer Computers managing director, Jeff Li, was also confident the merged company would see prices continue to tumble on a regular basis, rather than removing price competition from the market. The builder currently sources components from Gigabyte.

"MSI, eSys and Foxconn are all still out there to compete with," he said. "By coming together, Asustek and Gigabyte now have bigger bargaining power. I see us all paying less."

One builder unconcerned by the merger is Whitebox director, Gavin Ford.

"It's going to be interesting to see if any competitiveness gets taken out of market, but we use Intel motherboards so I'm a little at arm's length anyway," he said.

Despite the fact that Intel motherboards now had to compete with the combined clout of the two Taiwanese companies, Ford remained unperturbed.

"Intel's is a product designed for the education and business marketplace and we don't see a lot of competition from Asus and Giga-byte there," he said. "We're typically competing with guys using the same boards."

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