Tuesday, May 4, 2010

Gigabyte expected to continue receiving server orders from Dell in 2H10

After completing its server orders from Dell in early 2010, Gigabyte Technology is expected to receive more orders from the US vendor for the second half and become the third-largest server maker worldwide, sources from market watchers noted.

Gigabyte internally also hopes to bring its server business's revenues contribution from the current 10-15% to 20-30%, the market watchers noted.

Gigabyte was originally a server manufacturing partner for Google, but the company later lost the orders to Quanta.

Currently, the motherboard business still accounts for 65% of Gigabyte' revenues, graphics cards about 10%, servers and storage 10-15% and the rest from networking devices, notebooks and handheld devices.

Gigabyte shipped about 18 million motherboards in 2009 and expects to ship more than 17 million units in 2010. The company also shipped 300,000 notebooks in 2009 and expects the volume will reach 500,000 units in 2010. The company's subsidiaries in charge of handsets and notebooks are currently still unable to turn a profit, and the company has already stepped out of manufacturing motherboards for China's white-box netbook vendors as demand has dropped significantly.

Gigabyte recently launched a series of AMD 800 chipsets-based motherboards with the company's exclusive Auto Unlock technology, which assist consumers to open up hidden cores on AMD's processors.

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