Although it has reduced its motherboard shipment forecast for the second quarter due to the depreciation of the euro, Asustek Computer expects shipments in the third quarter to hit a record, as demand from Europe will start picking up.
On June 2, Asustek stated that the company's motherboard shipments in May were affected by a mix of the traditional slow season, Europe's bond crisis, conflict between North and South Korea, and riots in Thailand. The company shipped 1.4 million motherboards in April and was originally expected to ship 1.5 million in May, according to market sources. Although, Asustek has not yet announced its May shipments, the sources expect that the total will not reach Asustek's original target.
Although Asustek originally forecast that its second quarter motherboard shipments would be down 5-10% sequentially, the company is now saying a drop of 15% is more likely. Asustek announced shipments of 5.8 million units for the first quarter, so a 15% drop would put its second quarter shipments at around 4.93 million units. Such a drop still would require Asustek to ship around two million motherboards in June, as it is unlikely to have achieved more than three million shipments through the first two months of the second quarter.
However, shipments in June are also expected to remain low as demand in Europe, Japan, South Korea and Latin America will drop since the FIFA World Cup will be held during the month.
Still, while the euro deprecation has affected channel sales and caused retailers to maintain lower inventory levels as a priority, any delayed demand plus the rebuilding of normal inventory levels by channel retailers restocking provide a scenario where Asustek's motherboard shipments can receive a big boost in the third quarter, according to company vice president of global open platform business Jackie Hus.
Therefore, Asustek is maintaining its goal of shipping 25 million motherboards this year, Hus noted. Assuming Asustek can ship 10.73 million motherboards in the first half of the year, the company will need to ship at least 14 million motherboards in the second half to reach its goal. Market watchers believe the company will be able to ship 6-6.2 million units in the third quarter and expect that Asustek will have no difficulty achieving its goal. However, it remains to be seen whether Asustek can achieve shipments of 10.73 million in first half of the year
On the other hand, Gigabyte Technology is maintaining its forecast of a 15-20% sequential drop for motherboard shipments in the second quarter, as the company's clients have already started restocking their inventory. Gigabyte expects its third quarter shipments will grow 20% compare to the second.
Article translated by Joseph Tsai
