Intel pulls out of branded motherboard market in China

Other regions to follow?

NOW THIS IS interesting. After Intel “gave away” its motherboard design business and manufacturing to Foxconn, as it wasn’t cost effective enough for Intel to design and manufacture its own branded motherboards, it now appears that Intel has decided to pull out of what is potentially one of the biggest markets in the world, namely China.

Digitimes is reporting that Intel has phased out its own brand motherboard from the Chinese market over the past six months and is instead focusing on India and “other emerging markets”. According to a comment from Intel, its own brand “motherboard business is intended to foster and enable growth for the motherboard industry by collaborating with industry partners to explore business opportunities” It goes on to say that Intel feels that the Chinese market is mature enough for Intel to say its farewells and move on to greener pastures.

This brings up the obvious question, what’s the purpose of buying an Intel branded motherboard when the products in question are no longer made by Intel? In the past Intel branded motherboards sold on the sole basis that they were designed and manufactured by Intel, but when this is no longer the case, why wouldn’t you rather chose to go with a motherboard from a manufacturer that actually designs and makes its own boards?

As far as cost cutting exercises go, this doesn’t seem to have been a very clever one. Yes, there are still people out there that buy Intel’s motherboards, but in general you get more for your money by going with one of the other large reputable brands. However, if the move was done so that Intel can focus on “emerging markets” then we can sort of understand Intel’s reasoning. But then why should Intel only pull out of China and not the US, Europe and other “mature” markets as well?S|A

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