Abit, a division of Universal Scientific Industrial (USI), on Wednesday denied report about its possible intention to quit mainboard business. The company indicated that it remains committed to making motherboards, but will also introduce numerous new products to capitalize on the brand-name.
“Abit is a well-established and strong brand within the enthusiast and high-end motherboard and components industry. In fact, particularly over the past 12 months we have been able to considerably increase market share not only in traditional markets, such as Western Europe, but even stronger so in emerging markets, such as East Asia as well as in the Middle East. […] Abit stays committed to motherboards and has a broad lineup of motherboards ready, as you will see during Computex,” said Thore Welling, global marketing director at Universal Abit, reports Ocworkbench web-site.
Back on Tuesday a Taiwan-based web-site reported that expectations of USI for Abit’s business were not met and the holding was mulling to pull out Abit brand from the motherboard business and refocus the company on other devices. It was claimed that Abit sold from two to three million mainboards last year and this year the company’s sales dropped, which is why at Computes the company plans to demonstrate its FunFab digital photo frame with integrated printer as well as a mobile Internet device (MID).
“Broadening of our product lines into the consumer electronics - digital photo frames with integrated printer and MIDs – segment represents a stronger commitment to the overall brand and the continuation of our motherboard concept into other products,” added Mr. Welling.
It is extremely tough for second-tier makers of mainboards and graphics cards to compete against larger suppliers since the latter enjoy lower prices due to high volumes, whereas smaller manufacturers have to keep pricing of final products on the low level. In the recent years many second-tier mainboard producers, including such legendary as Chaintech and Epox, had to leave this highly-competitive business.