MSI, as you’re well aware, markets and sells its own line of branded hardware, everything from motherboards and videocards, to netbooks and notebooks, and a spattering of products in between. But the company also maintains an OEM business, and for the first time, MSI is losing OEM orders, says Henry Lu, vice president of MSI.
According to Lu, MSI shipped less than two million notebooks in 2009, which failed to meet expectations. And of those it did ship, about 70 percent were branded models, which Lu says is indicative of its brand business showing significant improvement.
MSI noted a similar trend in its graphics card business, which saw a big drop in 2009. According to Lu, some clients are concerned about the rise of MSI’s brand business, and as a result, he expects shipments of both its notebook and graphics division to continue to drop in 2010.
One solution would be to spin off its brand and OEM businesses, but Lu said this isn’t likely to happen, at least not within the next three years. Instead, MSI will put a much greater focus on its branded business in an attempt to offset the losses from its OEM orders.
via:
MSI’s Brand and OEM Business Face Off
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