Asustek muscles into low-cost mobos – report

Profits down

Asustek is to target the low-end mobo business through a new subsidiary, Digitimes, the Taiwanese newswire, reports today. The new sub - as yet unnannounced - will be called Hua Ching (or something like that - Digitimes says the name is transliterated from Chinese).

Asustek is noted for the quality - and prices - of its motherboards. But it has not been immune from the price wars and sluggish demand afflicting the Taiwanese mobo sector.

According to analysts surveyed by Bloomberg, Asustek's Q1 profit will be down 25 per cent to US$111m on sales down three per cent from the same period last year.

Asustek has countered lower demand from no-name PC makers, with more orders from the likes of Dell and HP. However, the A-brands have screwed down Asustek on price. Asustek reports its figures at the end of the month. ®