Contents - MiTAC

1.2.2 Server product series
Servers are used primarily for running corporate information systems, and
represent an essential investment that companies make in basic infrastructure. Because
computer systems are a critical tool for sustaining the business of modern corporations,
companies place a great deal of importance on total cost of ownership (TCO) when
considering server purchases. TCO includes the cost of downtime when the system is
not functional, as well as regular maintenance costs. Therefore, server customers
demand system reliability, availability, serviceability, usability, manageability—known
collectively by the acronym RASUM. Servers with strong RASUM require a longer
product development and testing cycle, and such products also carry a higher product
margin and long product lifespan. Major international server vendors are
correspondingly cautious in outsourcing manufacturing and design for their products, as
establishing the necessary close working relationship requires more time. Besides
hardware, software is another key facet of a server solution.
From the perspective of server types, shipments of traditional pedestal servers in
the US market have already begun a gradual decline. Such servers are being replaced by
rack mount models, which have become the mainstream choice. This trend will become
evident in the Europe and Asia markets over the next one or two years. Rack mount
servers are likely to be succeeded by even more compute-intensive blade servers. The
high compute-intensity of rack mount and blade servers entails more stringent system
cooling measures. Vendors will be increasing the share of R&D resources and
investment allocated to these types of servers compared to traditional pedestal servers.
1.2.3 Wireless communications product series
(1) Industry status and development:
a. PDA
According to IDC estimates, in 2005 market share for Windows Mobile
operating systems will catch up to the market share for Palm OS, and go on to
surpass it. Together, the two largest PDA OSes will account for 80% of the market.
Windows Mobile OSes can be expected to appeal to the large number of Windows
users in the PC market, because of such advantages as user familiarity with the
interface, file-level compatibility, full-color multimedia functionality, and fast data
transfer speeds. However, growth in the traditional PDA market slowed after 2002,
entering a transitional period. Although still expanding, the growth stems from
increasing sales of wireless PDA products rather than traditional PDAs. According
to forecasts by Taiwan's Market Intelligence Center, wireless PDAs will account
for close to half of the overall PDA market in the second half of 2004, becoming a
mainstream product.
b. Smart phone
According to IDC statistics, the market for mobile phones in 2003 was
roughly 440 million units, with growth of 10% for the year. In 2004, the size of
the market should increase to over 500 million, with most of the demand
stemming from users replacement of older phones. Numerous products with
extremely appealing new features are being introduced. Such "killer app" features
include color screens, MMS, Java, and polyphonic ring tones are a key driving
force behind market demand for phones. IDC points out that since 2000, smart
phone shipments have been doubling or even tripling yearly. Global shipments of
smart phones reached 13.08 million in 2003 [I think the 13.08 is wrong, since it is
more than the volume predicted for 2007], 3.6 times as many as were shipped in
the previous year. Over the next five years, IDC forecasts that growth in the smart
phone segment will be twice as rapid as for other types of mobile phones. In 2007,
sales volumes are set to reach 8 million. Microsoft's smart phone platform is
strongly supported by Taiwanese contract manufacturers, and products based on
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