Letter To Shareholders - Mitac
Letter To Shareholders - Mitac
Letter To Shareholders - Mitac
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
management, PC data transmission etc), design, and pricing.<br />
MiTAC is devoted to developing PND, AVN, mobile TV with embedded GPS,<br />
out door navigation devices …etc. There are more and more features added<br />
everyday to PNDs so the products will be more dedicated and practical and can<br />
create many highly-added values. PND’s navigation combined with digital maps<br />
and well-designed navigation software will make the PND a must-have gadget in<br />
the future.<br />
D. The market keeps growing<br />
In addition to working at key markets, such as North America and Europe,<br />
MiTAC will emphasize on developing markets, including in Mainland China,<br />
Japan and Eastern Europe.<br />
E. E-supply chain<br />
For the needs of MiTAC’s global production and to separate local markets,<br />
MiTAC has not only modularized all designs for key components, but also<br />
integrated the upstream vendors into B2B in order to use the Just-In-Time system<br />
to lower our inventory and reduce our risk and to give our clients an<br />
always-on-time delivery service.<br />
(3) Unfavorable factors to the future and the way to deal with<br />
A. Intense competition: Will all major vendors entering the handheld device market,<br />
Canalys has predicted that prices will become to drop. The average price in 2010<br />
for a PND device will be US$ 100. Additionally, the functions of PND and<br />
wireless communications products continue to integrate. GPS smart phones will<br />
become a necessity, which will cause an even more competitive market.<br />
Our fallback measures:<br />
a. Closely observe R&D innovation, strengthen our R&D results, shorten product<br />
development times, and keep developing new models; utilize differences in<br />
products and mass produce to maintain our profitability.<br />
b. Increase customers’ satisfaction from providing design, mass production and<br />
backup support services and try to ally with major brands in the world.<br />
c. Utilize our global sales and distribution logistic model and build a<br />
comprehensive material system, a value chain and the backup support.<br />
B. Key components remain under control of foreign vendors and software and<br />
hardware integration:<br />
Fallback plans:<br />
a. Maintain a good relationship with providers; in the meantime, train people who<br />
can operate platform and communication components.<br />
b. Find more suppliers for key components: Seek alternative suppliers to ensure<br />
ample sources and gain competitive prices. In addition, maintain good<br />
relationship with domestic vendors for more options.<br />
c. Use mass amounts to lower unit price: Our several products are top sellers, so<br />
we won orders from large OEM/ODM companies; therefore, the procurement<br />
cost has been greatly reduced.<br />
76