Letter To Shareholders - Mitac
Letter To Shareholders - Mitac
Letter To Shareholders - Mitac
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and cell phones, vehicle screen displays are starting to become the fourth most<br />
common display device for the average person.<br />
C. Outdoor navigation<br />
GPS is being more widely used than ever in our daily life. For example, during<br />
cycling, hiking, camping among other diverse activities. Humans’ need for<br />
navigation is not confined to vehicles, but also during outdoor activities; for this<br />
reason, outdoor GPS navigation devices are also becoming the market's new<br />
favorite.<br />
(4) Competition<br />
A. Merging<br />
Many PND and cell phone manufacturers merged graphics vendors or other<br />
suppliers to lower costs on software and hardware in 2008, such as Navigator<br />
<strong>To</strong>m<strong>To</strong>m who bought Dutch TeleAtlas (TA); Nokia merged graphics company<br />
Navteq. As for MiTAC, we purchased Navman and will continue to cooperate with<br />
good graphics companies and will divide markets by providing added-values.<br />
MiTAC also acquired Magellan, America's third largest navigation provider, while<br />
CSR acquired SiRF, the world's largest GPS chip supplier, in 2009.<br />
B. Competition among vendors<br />
Having so many manufacturers joining in the research, development, and<br />
production of handheld devices, product variety and competitiveness within the<br />
market is becoming more intensive than ever. In 2009, MiTAC will continue to<br />
focus its designs based on consumers' needs; enhancing the convenience and ease<br />
of operational interfaces while extending the comprehensiveness of its map data<br />
as well as product differentiation.<br />
The rapidly growing sales volumes of smart phones also present enormous<br />
opportunities, for which MiTAC already has extensive involvement in this<br />
segment. Its 2009, focus will be placed on the development of smart<br />
phone-compatible navigation software that produce higher profit margins.<br />
MiTAC continues to outstretch its competitive edge through innovative research<br />
and development, production quality and cost control, and mobile positioning<br />
services; its product developments are especially aimed to create market trends,<br />
customers' satisfaction and needs. Through strategic alliances with world<br />
renowned hardware and software providers of mobile communication services,<br />
MiTAC aggressively searches for new buyers in the global PND market, capturing<br />
the third largest market share at 7%. Its acquisition of Magellan, the world's fourth<br />
largest GPS brand, will help raise its market share in the north American region<br />
and capture the outdoor GPS market, thereby providing significant support to the<br />
company's future revenue growth.<br />
4. Enterprise and channel server products/ workstation<br />
(1) Product Status<br />
The company’s sServer products can be classified into X86 and non-X86 categories.<br />
Non-X86 servers are targeted at mainframes customized for specialized uses or<br />
professional users. CISC, RISC, EPICRISC, and Itanium UNIX series have<br />
relatively fewer users and the market is lead by Sun, IBM, and HP among other<br />
world renowned manufacturers. On the contrary, X86 servers are developed and<br />
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