Colorful Technology expects its revenues to rise on year in 2017 thanks to graphics card and motherboard demand from the gaming market and the cryptocurrency mining fad. As for 2018, while the two major businesses are expected to continue enjoying growths, the China-based vendor is confident that its new product lines including chassis, power supply, solid state drive (SSD), memory and all-in-one PCs, will achieve strong sales.
Colorful was originally a motherboard and graphics card distributor, but later began to develop own-brand products. Colorful also recently started pushing its brand products into non-China markets including Europe, Japan and South Korea as well as Southeast Asia such as Vietnam, Thailand, the Philippines and Indonesia.
Colorful pointed out that the company is the fifth-largest graphics card vendor worldwide, the largest in China, and the third-largest motherboard vendor in China behind only Asustek Computer and Gigabyte Technology. With its expansion to new markets outside of China, Colorful expects its revenues in 2018 to grow dramatically from 2017.
Colorful shipped 2.4 million motherboards in 2016 and is expected to ship 2.8 million units in 2017 partly thanks to the contribution from non-China markets. The company is also seeing increased shipment ratio for its midrange to high-end products, which is expected to boost the vendor's product ASP and profitability.
For 2018, with its expansion into South Korea and Southeast Asia, Colorful expects its motherboard shipments to have a chance of reaching three million units.
South Korea's motherboard market has a scale of around 1.2-1.5 million units a year and Gigabyte had over a 30% share of the market in the first half of 2017, while Asustek and ASRock together had around 40%.
Colorful sees rising motherboard and graphics card shipments.
Photo: Monica Chen, Digitimes, December 2017
