Asustek-Gigabyte Deal to Raise Prices
Asustek and Gigabyte, two of the largest motherboard makers in the world, recently announced that they will be joining forces to build a new company that will combine production of their motherboard and graphics card products. This comes after rumors that Gigabyte was in danger of being bought out by their competitor, Foxconn.
InfoWorld speculates that while the deal will benefit the industry and keep Gigabyte from being swallowed by a take-over, it may result in less competition and higher prices for end consumers.
"Despite lower raw material costs, the two companies will hold more market share and work more closely together. That's a big difference from the past, when motherboard makers launched massive price wars against each other in order to gain market share. The price wars often cut into company profit margins, giving users bargain prices."
