Gigabyte updated its financial guidance and confessed it expects to sell under 13 million motherboards this year, down from 16-17 million units in 2016. DigiTimes reports next year could be even worse, weak demand from Chinese consumers could push Gigabyte's 2018 motherboard sales below the 10 million unit mark.
The company is still the number two player in the motherboard market but it's been hit by a double whammy. Gigabyte sold close to 20 million motherboards a year during 2013-2014 but its competitive position has deteriorated while global demand weakened.
In recent two years, both the desktop PC and DIY markets in China ceased their growth momentum, causing Taiwan's top-5 motherboard suppliers to suffer significant sales declines. Among them, Asustek Computer managed to offset sales shrinkage in the sectors with its ROG-branded gaming motherboards bearing higher average selling prices (ASP) and gross margins, while Micro-Star International (MSI) also successfully built a firm presence in the medium to high-end gaming motherboards and graphics card markets. In contrast, Gigabyte's AORUS-branded gaming products and graphics cards did not perform as well as their competitors, the sources said.