Gigabyte to reorganize motherboard and graphics card businesses

OMG this is huge news!

Gigabyte Technology will begin a business reorganization on August 1 and merge its motherboard and graphics card businesses together. The new department will be led by Eddie Lin, sales and marketing associate vice president of Gigabyte's Gaming Product Business Unit.

For the general public most of you wouldn't know that the Graphics card and Motherboard divisions of Gigabyte have always been seperate.  Different budgets, different branding, different marketing and different people.  This is why several years ago you saw the Aorus brand on video cards and pherpriphals but not on motherboards.  Likewise motherboads were branded under "Ultra Durable" and also came with strange logos.

Well, with to the uptick of video card sales and continual decline of motherboard sales it makes sense to combine the departments (finally) and deliver a consistent message. 

Or in this case equalize the books

They (Gigabyte) started on this path during CES 2017 and I can only hope things will get better as time goes on.

Although Gigabyte had excellent performance in the second quarter, its motherboard shipments continued to drop and reached only three million units. Gigabyte's strong performance in the second quarter was contributed mainly by its graphics card business, which enjoyed high revenues due to the cryptocurrency mining trend, and server orders from Russia-based Internet service provider Yandex. However, since the two sources of income are only short term, Gigabyte has already turned cautious about its future operations.

Several of Gigabyte's motherboard executives will be shuffled and will report to Lin after the merger is completed.

With the business reorganization, some market watchers believe Gigabyte will see a series of layoffs and resignations after October, but operations should return stable in the fourth quarter with a new team.

However, the business reorganization and exchange rate fluctuations are still expected to impact Gigabyte's profitability in 2017, the sources added.

This is the part I worry about.  As you can imagine I have friends that work inside Gigabyte and a restructure is one of the few times where cleaning house is just part of the process.

Related Web URL: http://www.digitimes.com/news/a20170724PD207.html?...