Contents - MiTAC

(3) Wireless communications product series
According to Gartner Group statistics, global PDA sales in 2003 amounted to
11.45 million units. As for smart phones, Market Intelligence Center statistics show
that shipments in 2003 reached 14.33 million units. With entry-level, mid-range,
high-end and wireless-capable PDAs, MiTAC's PDA product line is not only
comprehensive, but includes a device with GPS capabilities that has opened up new
markets by adding mobile lifestyle applications to handheld computers. MiTAC's
shipments for PDAs reached a new high in 2003, hitting 550,000 units, and reaching
a global market share of 4.8%. MiTAC's smart phones achieved good results in the
European and Asian markets as well. With the smart phone market forecast to grow
at double the pace of the market for other types of mobile phones, the opportunities
for applications that support messaging that combines voice and multimedia, that
allow users to manage personal information on their phones, and that enable
handwritten input will show strong demand growth. With MiTAC's product
positioning ideally suited to take advantage, these trends are very favorable for our
growth prospects and expansion in market share through development of new
markets and the winning of new orders.
2.1.3 Future Supply and Demand, and Growth Prospects for the Market
(1) Desktop Computers
The global PC industry is now more than twenty years old. Products are largely
in a mature phase of development, with the major markets of the USA, Europe, and
Japan quite saturated, limiting potential for future growth. As for emerging markets
such as China, India, and Latin America, due to the relatively level of penetration for
PCs compared to the previously mentioned markets, they present a much brighter
picture for strong growth in the future.
(2)Server Product Series
As economic recovery gains strength, corporations' willingness to renew IT
spending is rising, spurring demand in the server market. Major international server
vendors are placing an increasing number of orders with Taiwanese companies. Due
to these factors, Taiwan's server shipments in 2003 showed substantial growth over
2002.
In recent times, major international server vendors have increased their levels of
outsourced manufacturing in order to reduce production costs, increase product
competitiveness and expand market share. With their advantages in cost, R&D speed,
and delivery times, Taiwanese server vendors have been a direct beneficiary of this
trend. The scale of Taiwan's server industry is expanding in step with increases in
contract manufacturing orders. Although most outsourced server manufacturing is
restricted to entry-level, low-end products, with the volume of orders increasing, the
proportion of relatively high-priced rack-optimized and blade server product
shipments is rising, and this is compensating for the declining prices of some
components and contract manufacturing fees. Shipment values are therefore manage
to show growth.
Looking at Taiwan's server industry in 2004, with various countries' companies
generally bullish on the strength of the global economy's recovery, and subsequent
increases in spending on IT equipment, major international server vendors can be
expected to continue increasing the proportion of their products outsourced to
Taiwan for manufacturing. Therefore, Taiwan server industry shipments will likely
continue growth, and once again record historic highs.
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