Increasingly high inventories have forced motherboard companies to slash prices of recently-launched 845GL-based motherboards, leaving little room for profits, industry sources revealed.
According to sources, some first-tier manufacturers’ quoted prices to SIs (system integrators) in emerging markets such as India, China and Central and South America have dropped to as low as US$60, setting a record low price for Intel-based products upon launch.
Board makers noted that the 845GL, a simplified version of the 845G, is designed to target the cost-sensitive SI and brand-name PC sectors. However, the US$60 price has essentially squeezed out any profit manufacturers may obtain, as it costs around US$55 to produce an 845GL motherboard.
Motherboard companies noted that although the low price is only offered in certain markets, it has inevitably affected current pricing standards. Even the high-end 845G-based motherboards are reportedly quoted at US$90.
According to sources, the finished product inventories at some first-tier companies have exceeded one million units, of which nearly 40% are 845B0 (845D)-based motherboards.
Following the 845GL products, motherboards based on Intel’s new 845G and 845E chipsets will soon hit the market as well.
Article translated by Christy Lee and edited by Richard So
