Gigabyte Technology shipped 1.55-1.65 million motherboards and 250,000-320,000 graphics cards in July, each rising by 10-20% on month. The company's July revenues of NT$3.762 billion (US$130 million) increased 3.86% on month but decreased 9.5% on year. January-July revenues of NT$26.576 billion dropped 3.65% on year.

Due to Gigabyte having some issues with its internal organization restructuring, the company's branded motherboard shipments in the first half were lower than expected and could cause difficulty for the company to achieve its goal of shipping 19 million branded motherboards in 2011, with the volume likely to reach only 17.5-18 million units.

In the China market, Gigabyte only shipped about 1.3 million motherboards in the second quarter with shipments in June of only 350,000 units, a lot lower compared to its major competitor Asustek Computer's shipments of 1.9 million units in the second quarter. However, Gigabyte had a significant recovery and shipped 650,000 units in July, behind Asustek's 800,000 units for the month, according to industry sources.

The sources pointed out that Gigabyte and Asustek have been competing over their technologies and components, and have also started price competition to gain market share, but due to the overall demand in China being not as strong as expected, the top-two players' fierce competition has started creating pressure on smaller motherboard players such as Micro-Star International (MSI) and Biostar Microtech International.

For the third quarter, Gigabyte is expected to see a sequential shipment growth of 15%, stronger than Asustek, due to its lower comparison base in the second quarter.

By: DocMemory
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