ASRock’s shipment to China has declined in 2015

ASRock had a poorer performance in 2015 as shipments of it’s motherboards declined. On the other hand, it’s IPC business is enjoying a profit operation and starting to see growth in server business.

ASRock had consolidated revenues of NT$7.22 billion for 2015, down 19% on year, but its gross margin grew slightly from 18.4% in 2014 to 19.7% since the company has stopped landing orders for some of China’s low-profit motherboards. The company’s investments in server R&D also increased, and its operating expenses accounted for 14.8% of its revenues, up from 12% in 2014.

Because of the above factors, ASRock’s consolidated net profits were only NT$240 million in 2015, down 52% on year.

ASRock has lost to ASUS and GIgabyte both having the 70% marketshare in motherboard shipments. China market is largely eaten up by the big 2 but ASRock is still able to enjoy stability in market share in N. America, Europe, Japan and Korea due to it’s mid to high end products.

ASRock as a motherboard manufacturer might need to evolve to more than a motherboard company to survive in this throat cutting business as PC sales in general are declining.

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