Letter To Shareholders - Mitac

(6) Since many worldly famous companies have started a price war, it will be a great
advantage for all Taiwanese companies to obtain orders from other vendors due to
our low price. While worldwide famous companies continue to outsource, we believe
that Taiwanese companies will benefit from this.
(7) The application of Cloud Computing has made thin computers popular. From the
development of remote control, to local server, and from tiny monitors to VOIP and
video conference devices, the market is calling for the mainframe supported multiple
high-definition monitors without fans. In terms of product structure, thin clients had
evolved from the conventional micro form factors into all-in-one devices with
integrated screen display, and into portable thin clients. Whereas operating platforms
had also extended from the x86 structure into silicon on-chip (SOC). The company
has ready access to comprehensive product lines to meet customers' every need.
(8) All-in-one computers have been rapidly growing in popularity. In fact, there are many
reasons to cause AIO DT to be popular again. Firstly, monitors are getting too big for
computer desks. 22 to 24 inches monitors are already oversized; hence monitors have
reached their limits. Secondly, the improvement of DT’s modules has made
computer upgrades less necessary. Therefore, there will be less of a reason to separate
monitors and DT, so all-in-one DT has been much more stylish and popular. In 2009,
DT has been developed in two totally different directions: one is slim, small,
lightweight, inexpensive, low power consumption and a friendly design and is for
word processing and web browsing purposes. Nettop、AIO DT are type one. The
other direction is high-end, high-efficiency, high-cost, energy intensive and with a
metallic look. They are mainly used for video games and high-definition conference.
“Enthusiastic PC system” is the type of this cutting edge model.
MiTAC has been working on not only the completion of production lines on
all-in-one products for their differentiation and design, but also R&D sub-generation
products with major PC OEM vendors. We hope to increase sales of components and
high- value-added products.
(9) The point-of-sale systems (POS) are showing signs of recovery as European and US
economies stabilized; food, beverages, and other service industries which the POS
system is mainly targeted to are showing signs of revived business activities. In light
of the potential of POS systems and the ability to integrate with more powerful
systems, the company has also begun its preparation for the POS product line.
(10) Creative and fashionable mobile Internet devices, and the wide ranges of services
that they enable, are creating a market of their own with the arrival of iPAD.
The usage of which is designed to liberate users from the complexity of personal
computers. Mobile Internet devices are creating whole new commercial
opportunities with a promising future.
2. Enterprise products
Servers are used mainly for building corporate information systems, making them an
essential infrastructure investment for businesses. Because information systems are a
critical tool for any modern corporation seeking to sustain its operations, companies place
great importance on Total Cost of Ownership (TCO) when it comes to purchasing servers.
TCO includes the business costs incurred when the system is not operational as well as
regular maintenance costs. Therefore, they demand Reliability, Availability,
Serviceability, Usability, and Manageability – characteristics that are collectively termed
RASUM – from servers, which consequently require longer time for product development
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