Monday, February 4th 2019
DigiTimes: Gigabyte Looking to Cut up to 10% of Its Workforce, Lower Marketing Expenses
DigiTimes, citing sources familiar on the matter, have reported that Gigabyte is looking to improve its financial outlook amidst not-so-rosy projections for the graphics card and motherboard markets 2019 (with the former being expected to shrink, while the latter is to stay weak). The way they're going to do this, according to the report, is twofold: cutting on marketing expenses and the enrolled workforce. According to the report, he motherboard-bound employees are expected to be the ones coming out of the gates, for now.
To give some context to the weak motherboard demand, Gigabyte is reported to have shipped 16 million motherboards back in 2016 - and the objective for 2019 is to sell above 10 million units, a huge decrease in three years. As to grpahics cards, demand is now finding its non-cryptocurrency-driven quota, as shipments for graphics cards in 2019 are expected to reach the levels of 2016, at 3.5 million units sold - a strong decrease from 2017's 4.8 million units. It seems that Gigabyte has also been working on delivering products that offer higher profits than their usual outings, though, with multiple halo products (such as the Gigabyte Z390 Aorus Xtreme Waterforce, for example, which is available and retailing for $899 [or €1049 in Europe!]). These top-tier products have higher ASP and profits for the manufacturer than budget solutions, and look like a way for Gigabyte to look for higher earnings on a slimmer market.
Source:
DigiTimes
To give some context to the weak motherboard demand, Gigabyte is reported to have shipped 16 million motherboards back in 2016 - and the objective for 2019 is to sell above 10 million units, a huge decrease in three years. As to grpahics cards, demand is now finding its non-cryptocurrency-driven quota, as shipments for graphics cards in 2019 are expected to reach the levels of 2016, at 3.5 million units sold - a strong decrease from 2017's 4.8 million units. It seems that Gigabyte has also been working on delivering products that offer higher profits than their usual outings, though, with multiple halo products (such as the Gigabyte Z390 Aorus Xtreme Waterforce, for example, which is available and retailing for $899 [or €1049 in Europe!]). These top-tier products have higher ASP and profits for the manufacturer than budget solutions, and look like a way for Gigabyte to look for higher earnings on a slimmer market.
8 Comments on DigiTimes: Gigabyte Looking to Cut up to 10% of Its Workforce, Lower Marketing Expenses
Even if the stuff looks good, I don't want to deal with a dysfunctional after-sales department. When I build computers for my friends, I don't buy Gigabyte just for this reason and I'm ready to pay 20-50$ more just to be with a company that doesn't sabotage your card when you ship it to them so that they can say that it's not under warranty anymore .
It seems when they revise motherboards their quality get's worse- PCChips anyone???
Sad.
But that's what you get when you cut corners.