ASRock is planning to gradually phase out from the notebook segment, while concentrating on its core motherboard and small-form-factor PC business, according to industry sources.

In March 2009, ASRock unveiled its notebook and nettop lineup incorporating Intel's Atom processor as a newcomer to the notebook market. ASRock set up a division responsible for the new business, which the company viewed as a fresh growth engine, the sources indicated.

ASRock has successfully differentiated itself from Asustek Computer in the motherboard business. It was hoping to see the same success in the notebook segment, the sources added.

Initially, ASRock targeted the Europe and China markets with 12-inch and larger notebooks priced between US$400 and US$600. But sales performance has been unpleasant, the sources said.

Just like other second-tier notebook makers, ASRock has also been hurt by fierce competition from first-tier vendors, the sources noted.

Despite poor notebook sales, ASRock's SFF PC business has actually performed pretty well, according to the sources. SFF PCs now account for 10% of ASRock's total revenues.