Letter To Shareholders - Mitac

5.2. Market and sales overview
5.2.1 Market analysis
1. Sales regions of main products
Unit: NT$ Thousand
Regions 2009
N. America 23,481,838
Europe 14,794,217
Asia & Australia 19,369,595
Taiwan 393,765
Total 58,039,415
2.. Market share
(1) Client system business products
According to the statistics provided by IDC, the sales of client computer products
totaled approximately 127 million units worldwide in 2009; MiTAC’s sale of
entry-level and mid-level workstations and client computers amounted to 5.1 million
units, approximating a market share of 4%.
Currently, MiTAC’s OEM customers mainly consist of the world's top 10 branded PC
manufacturers. However, the company is striving toward technological integration to
broaden product variety (such as thin clients, point of sale systems, all-in-one
integrated computers, mobile Internet devices etc) as well as customer variety. Our
goal is to expand business scope in multiple directions for optimal risk diversification.
(2) Enterprise products
Because MiTAC’s products are mainly produced for ODM customers, it is more
difficult to gauge their market share. Drawing on many years of experience, Taiwan’s
major IT vendors are already able to provide integrated global logistics management,
providing customers with the best possible competitive advantage by coordinating
design, testing, manufacturing, assembly, and distribution with the customer’s market
launch timetable. The evident trend towards international brand vendors continuing to
seek Taiwanese partners shows that more and more non-PC products will be seeking
their design and manufacture outsourced to Taiwanese companies. Most Taiwanese
companies, including MiTAC, can anticipate enhanced competitiveness through this
type of alliance, helping them expand market share.
(3) Mobile communication products series
Sales volume reached 38 million units worldwide in 2009; this was a 7% decline
compared to the previous year. A small increase of sales volume is projected for 2010
at 39 million units. The statistics of Canalys indicated that North America consumed
47% in 2009 while EMEA consumed 39%, and the Asia Pacific region 13%.
MiTAC has a comprehensive line of entry-level, mid-level, and high-end products.
MiTAC GPS product sales in 2009 totaled 5.5 million units. The regional breakdown is
as follows:
A. European market
Canalys estimated that 13 million units of PND were sold in western Europe in
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