Gigabyte to achieve growth in 2012 motherboard and graphics card shipments
Gigabyte Technology is expected to see its motherboard and graphics card shipments reach 18.5-19 million and almost 3.2 million units, respectively, in 2012, while the company's EPS for 2012 is also expected to reach NT$2.6-2.8 (US$0.09-0.1), according to market watchers.
However, despite the strong performance in motherboard and the graphics card businesses, Gigabyte will still suffer losses in both the notebook and handset businesses, the market watchers noted.
Gigabyte shipped 14 million motherboards in the first three quarters of 2012 with volumes in the third quarter reaching 5.5 million units. However, the company is expected to see a sequential drop of 15% in its fourth-quarter shipments to reach 4.67 million units. Breaking down Gigabyte's motherboard shipments in the fourth quarter by month, the company shipped about 1.6 million units in October and will maintain flat performance on month in November, but suffer a drop in December.
Since Asustek Computer is only expected to ship 22.2 million motherboards in 2012, the top-two motherboard vendors' shipment gap will narrow to 3.2-3.7 million units, down from around five million.
Gigabyte shipped about 2.9 million graphics cards in 2011 and 2.4 million units in the first three quarters of 2012. In the third quarter of 2012, Gigabyte shipped about one million graphics cards and is expected to deliver at least 800,000 units in the fourth quarter.
Currently, the motherboard business contributes about 60% of Gigabyte's revenues, while the graphics card business accounts for about 15%, the Internet communications product business 10-15% and the rest is contributed by other product lines such as notebooks.
Gigabyte's Internet communications product business is expected to have flat performance in 2012 with stable set-top box orders from Chunghwa Telecom (CHT). As for Google TV, since the device did not draw as much demand as expected, Google did not place any new orders with Gigabyte, the market watcher noted.
Gigabyte shipped about 200,000 notebooks in 2011 and the volume is expected to stay at a similar level in 2012.