Geez Liteon takesover BenQ optical drive manufacturing unit and Abit sounds like its in big trouble

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johnS

BenQ may drop LCD monitor production line

Following Lite-On IT's takeover of BenQ's optical disc drive (ODD)
unit, industry sources yesterday indicated that BenQ may sell its LCD
monitor production line due to the low margins of the business.

Abit -- saw an article that said ECS took over their manufacturing and
they were selling their building or something.

Heres some headlines at one site:


24 Mar 2006: Abit said to be delisting, but is it Abit? - Newswatch [
Members only ]
22 Mar 2006: Second-tier mobo maker Abit to be delisted from TSE -
Newswatch [ Members only ]
21 Mar 2006: USI conservative about PC contribution despite takeover
of Abit's motherboard unit - Newswatch [ Members only ]
20 Mar 2006: Abit-USI motherboard joint venture planned to be set up
next month [ Members only ]
26 Jan 2006: Abit to change company name [ Members only ]
25 Jan 2006: USI prepares to buy Abit's motherboard division [
Members only ]
28 Dec 2005: Abit cuts debts by selling properties, but trouble
remains [ Members only ]
22 Sep 2005: Abit to migrate half of its capacity to ECS by end of
October [ Members only ]
12 Sep 2005: Abit looking to clear NT$4.2 billion loan by year-end [
Members only ]
6 Sep 2005: Abit finds itself in more trouble [ Members only ]


Some talk about MSI and Gigabyte:

28 Mar 2006: MSI and Gigabyte dismiss merger rumors [ Members only ]
24 Feb 2006: Industry makers concerned about potential Gigabyte and
MSI consolidation - Newswatch [ Members only ]

They say ASUSTek is doing OK .

Interestingly Chaintech in one blurb shows increased sales but mainly
in graphics cards and mem modules and despite that they are around the
break even point.
 
BenQ may drop LCD monitor production line

Following Lite-On IT's takeover of BenQ's optical disc drive (ODD)
unit, industry sources yesterday indicated that BenQ may sell its LCD
monitor production line due to the low margins of the business.

Abit -- saw an article that said ECS took over their manufacturing and
they were selling their building or something.

Heres some headlines at one site:


24 Mar 2006: Abit said to be delisting, but is it Abit? - Newswatch [
Members only ]
22 Mar 2006: Second-tier mobo maker Abit to be delisted from TSE -
Newswatch [ Members only ]
21 Mar 2006: USI conservative about PC contribution despite takeover
of Abit's motherboard unit - Newswatch [ Members only ]
20 Mar 2006: Abit-USI motherboard joint venture planned to be set up
next month [ Members only ]
26 Jan 2006: Abit to change company name [ Members only ]
25 Jan 2006: USI prepares to buy Abit's motherboard division [
Members only ]
28 Dec 2005: Abit cuts debts by selling properties, but trouble
remains [ Members only ]
22 Sep 2005: Abit to migrate half of its capacity to ECS by end of
October [ Members only ]
12 Sep 2005: Abit looking to clear NT$4.2 billion loan by year-end [
Members only ]
6 Sep 2005: Abit finds itself in more trouble [ Members only ]


Some talk about MSI and Gigabyte:

28 Mar 2006: MSI and Gigabyte dismiss merger rumors [ Members only ]
24 Feb 2006: Industry makers concerned about potential Gigabyte and
MSI consolidation - Newswatch [ Members only ]

They say ASUSTek is doing OK .

Interestingly Chaintech in one blurb shows increased sales but mainly
in graphics cards and mem modules and despite that they are around the
break even point.
Click to expand...

This is not a big surprise that the "enthusiast" market is drying up; it
was bound to happen eventually. The profit margins on boards and
peripherals is so small, except for the best and most expensive, that it
must be difficult to see any future in the business for those that have
no volume advantage.
Q
 
This is not a big surprise that the "enthusiast" market is drying up; it
was bound to happen eventually. The profit margins on boards and
peripherals is so small, except for the best and most expensive, that it
must be difficult to see any future in the business for those that have
no volume advantage.
Q
Click to expand...


I feel sorry for Abit. I kind of liked them. I have no idea if the
general low profit margins except maybe on high end graphics cards and
processors is the main culprit or if the bad capacitor problems hit
them more than ASUS or maybe some other bad business decision. They
were really reponsive when it came to RMAs.

I wonder if massive upgrades possibly due to Vista coming out will
create a better business climate for hardware manufacturers next year?
 
This is not a big surprise that the "enthusiast" market is drying up; it
was bound to happen eventually.
Click to expand...

Nope, it's not drying up, and it isn't bound to happen in
the short term (next few years). Abit merely faces still
competition and was never really able to compete with the
likes of Asus or PCChips except for enthusiast features...
but these days, quite a few boards have those ethusiast
features in market segments that didn't a few years ago.
So, the market didn't dry up, it just got more competitive.

The profit margins on boards and
peripherals is so small, except for the best and most expensive, that it
must be difficult to see any future in the business for those that have
no volume advantage.
Click to expand...

People are just cheap... remember the ECS K7S5A? Junk
boards, many of which couldn't even run 2 x PC133 memory
modules when that was one of the key selling points, and a
huge number of them failed due to faulty capacitors. People
bought them like crazy anyway, because it was cheap enough.
 
People are just cheap... remember the ECS K7S5A? Junk
boards, many of which couldn't even run 2 x PC133 memory
modules when that was one of the key selling points, and a
huge number of them failed due to faulty capacitors. People
bought them like crazy anyway, because it was cheap enough.
Click to expand...

Its kind of ironic ECS is so successful. I thought with their rep and
cheapo products they would have gone down the tubes a while ago but
they seem to be one of the more successful board makers.
 
Its kind of ironic ECS is so successful. I thought with their rep and
cheapo products they would have gone down the tubes a while ago but
they seem to be one of the more successful board makers.
Click to expand...


It seems white box makers like computer shops love them...
cheap to build then it breaks after the warranty period =
more profit to replace or service.

PCChips can do better though, except for the cheap
capacitors they made some decent Shuttle boards. It's not
that they couldn't do better, they just don't want to.
 
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