Asustek told Digitimes Red Flag is a new series of motherboards designed specifically for the China market, although it denies that it is at the scale of a sub-brand – yet..
Second-tier and third-tier vendors such as MSI, ECS and Colorful all suffered losses in the motherboard business. Asustek Computer and Gigabyte each shipped 17 million motherboards in 2015, and with the exception of ASRock did quite well.
Asustek and Gigabyte slugged it out in China. Asustek shipped 10 million motherboards in the country in 2015, slightly better than Gigabyte's 9.5 million units. Asustek thinks that Red Flag will increase pressure on Gigabyte to take over the mid-range and entry-level segments.
However this plan might hurt MSI, Biostar, ASRock and Colorful and force Gigabyte to adjust its pricing strategy. Asustek will establish a new team to specifically handle the new product series and the product line will have completely different specifications and pricing than Asustek brand motherboard products.