Abit To Bow Out of Mainboard Market
Steve Kerrison writes "Taiwanese technology firm Abit will be pulling out of the mainboard market at the end of this year. HEXUS.channel, citing sources close to South East Asian distributors, reports that the company will continue to deliver mainboard products until the end of 2008 and will still honour all warranties in subsequent years. Rumours of this decision circulated in May but were dismissed. Apparently the decision was made in the last couple of weeks. Abit is a popular brand amongst PC hardware enthusiasts, many of whom will be disappointed to see it leave the market."
It looks like the margins have become too tight for all but the largest mainboard makers to survive, with massive companies like Foxconn able to exploit extreme economies of scale.
Which is exactly what the TV industry went through. Even the big players left and licensed their names to Chinese companies. Do you really think the Sony TV is really a Sony? Or RCA or GE .... It's just a commodity.
The margins are just too low to even bother with them.