Letter To Shareholders - Mitac
Letter To Shareholders - Mitac
Letter To Shareholders - Mitac
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2009, and 1.3 million units sold in Eastern Europe; this was a 16% and 20%<br />
decline, respectively compared to the previous year. Sales to Europe as a whole in<br />
2010 is estimated to remain stable at 15 million units. MiTAC branded products are<br />
steadily gaining market share in the Pan-Europe market; it is the leading brand with<br />
9% market share in Western Europe and 25% market share in Eastern Europe.<br />
B.North America market<br />
PND product sales in 2009 totaled 18 million units; this was a much smaller<br />
decline of 3% compared to the 16% in the European market. Canalys projected a<br />
similar sales volume of around 18 million units for year 2010. MiTAC captured<br />
approximately 12% market share in the US, ranking third among other brands.<br />
C. Asia-Pacific market<br />
The Pan-Pacific region is the only place where PND showed growth; the growth<br />
approximated 12% compared to 2008. Product sales totaled 4.7 million units in<br />
2009, and Canalys projected a further 23% growth in 2010 to a volume of 5.8<br />
million units. Overall market share is expected to reach 12%.<br />
MiTAC’s products are well positioned. It gains new buyers through continuous<br />
product innovation and integrated mobile positioning services that are helpful<br />
toward further revenue growth and market share expansion.<br />
(4) Corporate server/workstation series<br />
Research conducted by IDC and Gartner concurrently indicated that the growth of<br />
X86 servers is driving the recovery of the entire server market. Compared to 2009,<br />
the server market is expected to grow by 5-9% in 2010. The low cost and high<br />
performance characteristics of X86 servers shall become the customers' main<br />
concern during IT equipment renewals.<br />
The company offers a wide variety of server/workstation products from entry-level to<br />
high-end solutions, regardless of Intel or AMD-based setups, MiTAC has them all. In<br />
view of customers' growing awareness towards C/P ratios and operating cost controls,<br />
there is great potential to the company’s server/workstation products. MiTAC<br />
expects to capture 10% of the X86 server market.<br />
3. Supply and demand projections in the future<br />
(1) Client system business products<br />
PCs have undergone many changes in the last twenty years and have reached<br />
maturity. As for the U.S., Europe and Japan markets, the market is quite saturated, so<br />
there is little room to grow. As for rising markets like China, India and South America,<br />
because PCs there are not as common as in developed countries, we believe that we<br />
will be able to maintain a positive growth in the future.<br />
Besides common PC products, MiTAC has been actively studying high-value<br />
added products, like all-in-one integration PCs, thin computers, point of sale systems<br />
(POS) and portable mobiles devices etc for cloud calculating and other high-value<br />
products.<br />
(2) Enterprise products<br />
With economic recovery more clear, enterprises are more willing to invest in IT;<br />
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