Peak retail summer vacation sales in China, back-to-school demand in North America and Europe, as well as PC replacement demand all produced stronger than expected performance for the Greater Chinese motherboard industry in the third quarter of 2003. Shipment volume reached approximately 33.8 million units, growing 24.3% year on year and 23% sequentially.
Although heated price competition continued unabated, shipment value rose 20% year on year and 28.6% sequentially to over US$2.1 billion, while ASP (Average Selling Price) ceased a long-standing downward slide, climbing from US$60 to US$62.3. The rise in ASP was driven in part by a larger proportion of motherboard adopting the 845 chipsets so aggressively promoted by Intel. Additionally, increasingly mature hyperthreading and WLAN (Wireless Local Area Access Network) technologies are gradually becoming standard motherboard specifications.
In the fourth quarter of 2003, seasonal factors combined with inventory stock-ups to prepare for an earlier than usual Chinese New Year are expected to push fourth quarter volume. Furthermore, price cuts on the 865 series chipsets by Intel and chipset players is anticipated to boost consumer replacement demand; Greater Chinese motherboard shipment volume is thus forecasted to grow 14% sequentially in the fourth quarter of 2003.
Shipment volume is expected to see a 10% annual increase in 2004 due to PC replacement demand in North America and Western Europe, increased outsourcing by international brand-name vendors, an upsurge in demand from emerging markets in Asia Pacific and Eastern Europe. Rollouts of motherboard adopting new CPUs (Central Processing Unit) and chipsets are anticipated to engender a further rise in shipment value and ASP.