Gigabyte could be planning downsizing

Gigabyte Technology is reportedly planning to cut its marketing and sales expenses in 2019, as well as cut its staff in its motherboard section by 10 to 15 percent in the first half of 2019, according to some market analysts in a DigiTimes report.

The demand for graphics cards is expected to suffer a significant drop, as well as the demand for motherboards to remain low in 2019. In a scenario of reduced income in the graphics cards and motherboards sector, the main manufacturers in the sector; Asus, MSI and Gigabyte have tightened their spending control to lessen the impact of falling demand.

Consequences of the bubble

Gigabyte motherboard sales have been declining since 2016, enjoying sales of 16 million units. In 2017, these fell to 12.6 million; And in 2018 they sold 11.4 million units. The drop in sales is expected to continue in 2019 and Gigabyte aims to keep sales above 10 million units. Meanwhile, its 2018 graphics card sales were 3.5 million units, where they were before the cryptocurrency bubble of 2017.

Added to all this is the shortage of Intel CPUs, which has done nothing to help the equipment and motherboard manufacturers sector. Furthermore, demand is still low after the currency bubble burst, so it seems that Nvidia is not the only one suffering from cryptocurrency.