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    ASUS Reduces Motherboard Production in the First Quarter

    We were informed that Asustek plans to reduce its motherboard production in the first quarter of this year, from 5 million to 6 million pieces per quarter before, and cut output to 3 million to 3.5 million pieces per quarter to help the company digest accumulated from the fourth quarter of 2011. The inventory.

    Sources pointed out that Asustek still has about one million motherboards in stock from the fourth quarter of last year. Although this issue will not affect the companya€?s sales target for the first quarter of 2012, the companya€?s upstream component partners may be affected.

    Asusteka€?s production cuts also affected its orders for chipset and processor makers. Asusteka€?s orders for Intel chips dropped by 2.5-2.8 million during the quarter. Orders for AMD chips dropped by 500,000-700,000.

    In the fourth quarter of 2011, although most motherboard makers focused on reducing inventory to cope with market demand and slumping sales, Asustek kept its production volume and led to an increase in inventory levels. As a result, compared with Asustek, other motherboard makers are expected to increase their motherboard shipments by 5-10% in the first quarter of 2012.

    In order to stimulate demand, Intel has already lowered its price to promote the Sandy Bridge CPU, and as the hard drive price is expected to gradually return to normal, most motherboard manufacturers are optimistic about the market demand in the first quarter of 2012.


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