ASUS cut motherboard production for Q1

/ 6 years ago

ASUS are the world’s biggest motherboard manufacturer so when they make changes it is a good indicator of changes in the whole pc market. According to Digitimes ASUSTEK has allegedly cut its board production for Q1 from the ‘usual’ 5 to 6 million units to about 3 to 3.5 million. ASUS apparently have over 1 million units left in stock for 2011 and so need to clear inventory before producing more. In addition to this three other factors are causing a reduction in motherboard demand including:

  1. The hard drive shortage reducing PC sales
  2. Q1 being a naturally weak part of the year for PC demand
  3. global economic uncertainties

The lower production plan also means Asus will be buying fewer chipsets this quarter. The order for Intel chips is said to reach 2.5 to 2.8 million units, while that for AMD silicon is supposed to be of 500,000 to 700,000 units. Board production at Asus should return to normal in Q2.

Source: Digitimes

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