ECS Exits Branded Notebook Business
August 19, 2005
In view of the keen competition in global notebook market, ECS (Elitegroup Computer Systems) has decided to give up notebook branding and go all out in OEM/ODM business, with particular focus on outsourcing from Chinese notebook PC brands. ESC is the first first-tier motherboard supplier to quit channel brand notebook business. In response to this strategy, ECS has adjusted their notebook shipment this year from one million units to 600,000 units. The adjustment is also in line with the company's current progress in shipment volume this year: for the first seven months of 2005 ECS' shipped 310,000 units.
Taiwanese first-tier motherboard suppliers originally became engaged in notebook branding and OEM/ODM business by leveraging their motherboard brand and manufacturing advantages. However, the fierce price competition launched by major global notebook vendors impacted motherboard suppliers' branded notebook deployment.