The motherboard market is too small for ASRock, who has decided to make the leap to the manufacture of graphics cards, which will be launched next April and will be based on AMD GPUs.
One of the largest motherboard manufacturers is ASRock, who is known for offering high quality motherboards at very competitive prices. It appears that ASRock will dive into the graphics card market in April and will initially focus on supplying AMD-based products, according to some industry experts. This is certainly great news, as a new competitor enters the market and could ease the market pressure a bit.
ASRock has increased sales of high-end motherboards and other products such as IPCs and servers. The company this year has a chance to increase profits by jumping into cryptocurrency mining, which keeps the momentum going, according to industry experts. Last year the company had revenues of $ 9.210 million in 2017, with net earnings of $ 469 million, offering a dividend distribution per share of $ 4.02, compared to $ 1.39 in 2016.
The company, in the past, has not had a good situation and it was in 2017, when the trend has changed, especially in terms of volume of motherboards shipped, increasing a lot in recent years. They have benefited from Gigabyte's reorganization last year, which has allowed to increase the distribution of high-end and mid-range motherboards, as well as to benefit from motherboard sales.
Some experts point out that ASRock's entry into the graphics card market, specifically in terms of AMD products, could put other manufacturers in trouble, since AMD does not plan to significantly increase the GPU market, which will affect the rest of actors.
Source: Digitimes
