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Thursday, December 14, 2006

Motherboards And VGA Cards Makers Problems

Non-Vista-supporting motherboards and VGA card inventories now a headache

With Windows Vista up and coming, makers of motherboards and VGA cards are now worried they will incur losses from their inventory of low-end products that do support Microsoft's new operating system (OS), according to industry sources.

The makers are now raising the proportion of shipments to emerging markets and government purchases, worrying that if they are unable to clear their inventories of such low-end non-Vista-supporting motherboards and graphics cards, prices of such products will plummet after the new OS hits the market, the sources said.

The sources pointed out that non-Vista-supporting products, such as the ATI Radeon 9250 and Nvidia MX4000 have seen their prices fall to US$35 and below US$30, respectively.

Sources in Taiwan's PC sector said the proportion of products that do not support Vista is currently very low in the market, as Nvidia and AMD-ATI have already reduced the output for such products.

They pointed out that almost all PC products in the market now support at least Vista Basic, with little demand for low-end products that do not support Vista at all.

The sources predict that even products that only support Vista basic may quickly fall out of favor in the market as consumers are likely to be more eager to experience the full multimedia functions promised by Vista.

Meanwhile, sources with motherboard makers revealed that AMD-based motherboards with Nvidia GeForce 6100 and nForce 400 are currently among the market favorites. Many makers of such motherboards have received Vista-certification, the sources added.

Motherboard makers are also gearing up their development of Intel 945GC-based products, which have very good market potential, the sources said. Currently, Elitegroup Computer Systems (ECS) has launched its 945GC-based motherboard, the 945GCT-M3. [Digi Times]

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