Manufacturing News

Gigabyte to Explore China's Netbook PC Clone Market

The Taiwan-based Gigabyte Technology Corp., a leading maker of motherboards in the world, has moved to explore the Chinese market for netbook PC clones and started seeking contract orders from three large-sized local clients, according to company sources.

Gigabyte has actively diversified its production into notebook PCs and handsets in recent years, and already confirmed a plan to venture into China's netbook PC clone market to boost its overall shipments of notebook PCs. This year, the firm, with debut of several new netbook PCs, projects the shipment to triple to 500,000 units.
 
On the other hand, thanks to launch of netbook PCs and rush orders, Gigabyte shipped over 4.6 million units of motherboards in the first quarter of this year, including 1.6 million units for January, 1.5 million units for February and 1.5 million units for March, with own-brand models accounting for around 85-90% of the total.
 
In March alone, Gigabyte, with robust shipment of own-brand motherboards, is expected to score over NT$40 billion (US$1.14 billion at US$1: NT$35) in combined revenue, for a 10% growth from NT$36.27 billion (US$1.036 billion) posted a month earlier, and will continue the sales boom into April, according to institutional investors. Besides, demand for motherboards from distributors in European, Chinese and Asia Pacific markets has gradually recovered.
 
However, Gigabyte still remains conservative about market prospects for the second quarter, expecting its motherboard shipment to edge down. Last year, the firm shipped around 19 million motherboards, with 16 million under own brand and 3 million on an OEM (original equipment manufacturing) basis. With the global economy to stay sluggish, the firm will manage to maintain the figure for this year.

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