A recent report from have surfaced stating that Elitegroup Computer Systems is quitting the motherboard business and will be ceasing to market their own brand of motherboards and will be relying mostly on an ODM/OEM business model which, as the report states, is equivalent to a gradual withdrawal from the DIY motherboard market as stated by Taiwan-based supply chain makers.
The full report is below for your convenience:
Source: DigiTimes
Elitegroup Computer Systems (ECS) has announced that it will no longer actively market own-brand DIY motherboards but will undertake ODM/OEM production if clients have demand, and this is the equivalent of a gradual withdrawal from the global own-brand DIY motherboard market, according to Taiwan-based supply chain makers.
This is because global demand for DIY motherboards is shrinking and ECS has been faced with increasing price competition from Asustek Computer and Gigabyte Technology, the two largest Taiwan-based vendors, especially in the China market, the sources said. Under the situation, another Taiwan-based DIY motherboard vendor is expected to follow suit by quitting the own-brand market in 2016, the sources indicated.
ECS has shifted its business focus from DIY motherboards to ODM production of notebooks and tablets as well as production of mini-PCs for own-brand sale, the sources said.
ASRock, Micro-Star International and Biostar Microtech International, three other Taiwan-based DIY motherboard vendors, have encountered the same situation as ECS, the sources noted.
ASRock focuses on marketing of mid-range and high-end DIY motherboard models in 2015 and, in addition, has extended own-brand production to servers and industrial motherboards, the sources said. Micro-Star and Biostar are expected to ship about 6.0 million DIY motherboards and below 3.0 million units, respectively, in 2015, the sources indicated.
As stated in the report, this situation isn’t limited to ECS and other brands such as ASRock, MSI and BIOSTAR have reportedly underwent similar dips in revenue from their consumer motherboard businesses. The report has not yet received much public attention but ECS has been quick in responding to the claims and have sent out this letter of clarification signed by their President, Sunny Yang:
Dear Our Distinguished Customers,
We feel regret to learn the untrue report from DIGITIMES pertaining to “ECS to quit own-brand DIY motherboard business, say Taiwan makers” on Jun. 24, 2015. We like to formally clarify that ECS would never give up any opportunity to work on own-brand DIY motherboard as what we always commit to our valuable customers.
We all learn to knee competition in motherboard industry. To receive the challenge, ECS has made all the efforts to manage our own brand motherboard and create more service and value to our channel customers for years. We would continue to put more resources to provide cutting edge products and marketing events as what we just announced at Taipei Computex in early June and, therefore, enhance our brand value and your confidence level.
ECS has been cooperating with you for many years, we treasure this relationship. We will also do our best to serve your needs through our global structures. We believe, through our close cooperation, a mutually beneficial result can be achieved in a long-term relationship.
Sincerely yours,
Sunny Yang
President
Elitegroup Computer Systems Co., LTD.
View original scanned clarification letter
B2G says: We’ve visited ECS’ Computex booth earlier this June and we’re really surprised to hear this kind of news as the investment in Computex would’ve easily made it clear the company still wants consumers to recognize their brand so a news like this after that event is hard to digest although it is widely known that demand for PCs have been waning, such a short period wouldn’t have been enough for the company to shift their focus. It could be business plan in the future but as it is, competition in the DIY PC space is still plenty and ECS still has its place in the market.
We wish the company the best and we hope to see more from ECS in the future.
27 Comments
Kala ko magagaya sila sa DFI
Awwww naalala ko tuloy DFI LanParty dati. The original Brown/Black and yellow
Crazy colors pero sulit.
Good stuff din
Good! 😀
http://www.kitguru.net/components/motherboard/anton-shilov/ecs-is-mulling-to-quit-own-brand-mainboards-business-report/
Di yan, buhay pa yan. We need competition in this market XDDD
Above is today post of kitguru.
http://www.kitguru.net/components/motherboard/anton-shilov/ecs-denies-plans-to-exit-branded-mainboards-business/
Yup nabasa ko yan kanina. Around 12pm nag-send ng letter si ECS denying the report ng digitimes.
Above is January post from kitguru.
Wtf honga noh hahaha
So ECS reached out to back2gaming? If ECS send a letter to you, you should show it to the public as proof..
Nasa link sir, scanned and signed.
For your convenience: http://www.back2gaming.com/wp-content/uploads/2015/06/Clarification-letter-from-ECS-062515.pdf
Then back2gaming will be more famous than kitguru. Coz your report is really updated with proof..
A-update din nila yan mamaya, siguro tulog pa mga taga-kitguru. Full blast si ECS on clearing this thing up pero mukang this isn’t the first time it happened so can’t say for certain what ECS is playing here.
Dapat ipost mo yan sa website ni kitguru. Tulog nga.
pangit naman kase ECS brand. di nila mapantayan si #gigabyte #Msi #Asus others like #Biostar #Asrock <— kahit paano nag improve pass decades
I mean the letter you have.. Haha
Noji: Sa dami ng nahawakan kong board lahat ng brand pwede ko tawaging panget dahil sa isang bad experience from any of their product pero that’s my opinion from my own experience. And hindi panget ECS, hindi lang sumasabay sa standards na nakasanayan naten.
Jimmy I think they got the letter na naman din. Kalat na sya eh.
Thanks Bossmac for the letter… I dont have it… Same as kitguru. Haha…
Haha papa-tag ko nga sila pag nireshare yan.
bossmac, buti pa sayo ganun experience mo sa ECS. ako i dont buy that crap ECS motherboard.
Mukang di kayo close talaga ni ECS hahaha eto video ko nung binaha kami ng habagat, nalubog ung isang workstation sa office. Corny lang ng title na ginamit nila, ginawang marketing angle eh haha: https://www.youtube.com/watch?v=vs96OZ99aGQ
They should make a great board this time. I’m kinda bit tired of seeing always Asus this, Gigabyte that, MSI there, Asrock here…. Don’t get me wrong, I love these four, but it’d be nice if we had a fifth choice.