Press Room
Clone Market Counters Seasonal Effects for Motherboard Shipments in 1Q 2004
April 28, 2004
- Greater Chinese motherboard industry shipment performance broke free from the traditional seasonal effects and hit a double-digit growth in the first quarter of 2004. Gains were realized due to strong demand in Europe and the heating up of demand in emerging markets such as Asia Pacific and Eastern Europe. 

There were no signs of peace in the price wars among makers in the first quarter of 2004. Added strong demand in the clone market for value-line motherboard and delays on higher end offerings, ASP (Average Selling Price) suffered growing downward pressure. However, the total shipment volume of nearly 34 million units led to 17.9% growth year on year, and helped maintain shipment value with a high growth rate of 17.9% year on year, reaching approximately US$2.1 billion. ASP dropped less than 1% from US$61.2 in the fourth quarter of 2003 to US$60.7 as price competition was offset by a rise in chipset and PCB (Printed Circuit Board) costs.

In the second quarter of 2004 stimulation from new rollouts is unlikely as Intel's new CPU (Central Processing Unit) is not scheduled for release until June, and ramp up times for memory remain unclear. Yielding to seasonal effects, Greater Chinese motherboard shipment volume is forecasted to decline by roughly 10% sequentially, yet 3.1% year on year.

Over the course of 2004, motherboard volume is expected to rise by 6.4% compared to 2003 due to a confluence of several factors: price reductions on mature offerings, new rollouts, corporate upgrade demand, growing barebone demand, and the progressive expansion of emerging markets in Asia Pacific and Eastern Europe. In terms of shipment value, motherboards adopting new CPUs and chipsets will continue to be shipped, beginning from the end of the second quarter, but it remains to be seen whether the contribution of new rollouts to shipment value will be offset by the price war.