Motherboard sales expected to go up this quarter

Hardware companies like Asustek recently complained about the low impact the release of Windows Vista had on hardware sales. However, a Citigroup report quoted by DigiTimes now suggests that motherboard sales will actually beat the seasonal pattern this quarter by going up 2% over first quarter sales. Last year, by contrast, second quarter motherboard sales were down 8% compared to the first quarter. The Citigroup report also says that Asustek and Gigabyte in particular were already "outperforming peers" in March.

As for the causes for the expected surge, DigiTimes quotes Citigroup as saying that increasing demand from PC makers, reasonable inventory levels, and upcoming price cuts from both Intel and AMD all make for a positive "overall sales environment." Indeed, we recently heard reports that AMD intends to cut prices on April 9, and rumors have been going around about April 22 Intel price cuts for weeks now.

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