Bozo Galora
Diamond Member
Elitegroup to Buy Chaintech?
Posted 11/21/01 at 12:04 am by Rat
According to the latest info, Elitegroup (ECS) is planning to enter the market of relatively expensive mainboards. Until recently, most Elitegroup products cost quite little money, which is valid for both: the products sold the ECS brand name as well as those sold as PC Chips, which also belongs to Elitegroup. This policy let the manufacturer really succeed: today Elitegroup is the leader among the mainboard manufacturers, shipping more mainboards than anyone else and leaving behind even ASUS. However, Elitegroup?s revenues are not that high yet. In this respect, the company is over two times behind ASUS. That is why Elutegroup?s desire to start producing more expensive mainboard solutions is quite understandable.
However, as you understand, the company can?t just start making more expensive mainboards one day. ECS and PC Chips have already become recognized as brands selling budget solutions for a long time now and the market will simply not accept it their mainboards become more expensive suddenly. As for establishing a new brand, it is also connected with many difficulties, because there will hardly be any one willing to buy an expensive mainboard from some unknown company. That is why Elitegroup has been looking lately for some company producing quite quality and not very cheap mainboards. And finally they found what they were looking for!
According to the rumors circulating in Tainwan now, Elitegroup arranged it that they would purchase another Taiwanese mainboard manufacturer: Chaintech. This way, after they finish with all the formalities, Chaintech will belong to Elitegroup, but will continue the mainboard production under its own brand name. It will allow Elitegroup to start conquering one more market sector and to increase the company?s revenues significantly. Although purchasing Chaintech will not allow Elitegroup to compete with ASUS in terms of the monthly revenues, it is still a significant move forward, and will become just a matter of time. As Elitegroup will be also able to sell its own mainboards under Chaintech brand name, and taking into account that they own huge production capacities, there may appear considerably more Chaintech mainboards in the near future.
