Gigabyte has merged the segment of motherboards and graphics cards, after a significant drop in sales, to try to overcome the situation.
The hardware market is increasingly competitive and the user has become demanding among so many offers. Gigabyte seems to be reorganizing its different sections within the company and the first step would have been to merge the amusement of motherboards and graphics cards for the consumer market, into a single division, which will be led by Eddie Lin, which is associate vice president of sales and marketing of the company's gaming products business unit and has been one of the developers of the AORUS brand within the high-end gaming segment.
The idea of expansion and development of the AORUS brand has been supervised by Eddie Lin, bringing this brand to the market for gaming laptops and the range of peripherals and not just staying on mid and high-end motherboards and graphics cards. All the company's mid-range and high-end products are currently manufactured under the AORUS brand, which is a specialized division for the gaming market.
This reorganization would be the product of a fall in the sale of computer components for gaming equipment. According to the data, the company would have distributed in 2016 about 16.2 million motherboards, which represents a drop of 900.000 fewer products sold, since in 2015 17.1 million products were sold. It should be noted that on the other hand, the average sale price of motherboards increased over the past year, which has allowed Gigabyte to maintain revenue. The NVIDIA and AMD price increases have also led to an increase in revenue, slightly.
It seems that despite being stable in 2016, the start of the year for Gigabyte this year has caused a significant decrease in sales due to the reduction in demand from the computer markets and internet cafes from China. Other factors have been the depreciation of the dollar, the shortage of components and the increase in prices, causing Gigabyte in the first quarter to sell 3.5 million motherboards and nearly 900.000 graphics cards, assuming a net income drop of 50.59%, compared to to the same period last year.
Source: Digitimes
