Q: When did UMEC enter the video phone market?
A: We launched our first video phone about 10 years ago. At the time, we saw an opportunity to leverage existing resources to enter a new market that showed some potential.
Q: How has the video phone industry changed over the years?
A: The video phones originated as a technology for the hearing impaired. And like many niche products, it eventually found wider audiences with the increase of international business and technological advancements, which opened doors to new applications.
Taiwan's VoIP industry began in the 1990s. Back then, there were hundreds of companies making these devices, but now only a handful remain.
Q: So how did UMEC survive such fierce competition? What is the company's competitive advantage?
A: In addition to video phones, which are part of our information communication product (ICP) division, we also develop and manufacture LCMs, power supplies, magnetic components and a host of 3C-related products. So we were able to synergize various resources and experiences to give us both cost and technology advantages.
In the past several years, we have gone beyond just making pure video phones. This year we introduced a new portfolio we called media phones. They support mobile video phone capabilities with both Wi-Fi and 3.5G telephony, but also have features making them attractive consumer electronics (CE) products. I'm talking about future such as Bluetooth, eBook reader functionality, digital photo support and GPS, among other things.
Q: Can you give a usage scenario for the media phones?
A: I believe corporate professionals who are constantly on the go would find our media phones very useful, particularly with video conferencing being a big part of their life.
Let's say a salesperson is out on a very important business trip, but there is a mandatory meeting back in the office. Since our media phones come with 5-inch, 7-inch or 10-inch touchscreen displays, they provide a more comfortable viewing experience compared with smaller handheld devices. In addition, the system is light and compact enough to enable users to remain connected anywhere they go through the support of Wi-Fi and 3G networks.
To host video conferences, the media phones comes with TV-out connectivity to hook up to larger monitors and projectors. Most standalone video conference equipment weigh more and cost around US$10,000. Our 7-inch model is priced at around US$130-150, depending on different customer options.
Q: Media phones sound fairly similar to netbooks and tablet PCs. How do you plan to differentiate them?
A: If you have a netbook or tablet PC on the road, you still need to bring along a handset for normal phone calls. Our media phones come with traditional handset features onboard and provide basic computing functions and Internet connection as well.
It's almost inevitable that notebooks, smartphones, tablet PCs and video phones will converge. What is the future for your media phone portfolio?
In 2009, our ICP business accounted for 30% of the company's total revenues and we shipped around 200,000 units. For 2010, we are looking at 50% growth in both shipments and sales.
Compared with 10 years ago, infrastructure for video communications is now quite mature. By mobilizing video communications, the media phones aims to open up a new sub-segment in a crowded market of converged portable devices. With the increasing frequency of natural disasters and outbreaks of epidemic, and companies slashing business trip budgets, we are optimistic about our products, which offer superior video communication capability.
Q: What is UMEC's current business model for media phones?
A: At the moment, we are an ODM. We bid for contract projects from carriers and then customize our designs accordingly. Our media phones are now based on open-source operating systems such as Android, giving the carriers, their customers and third-party developers more freedom to create applications that are more tailored to their needs.
We are also currently developing models that are based on Meego, Chrome and the Windows 7 operating system.
The company will be exhibiting its products at Computex in Hall 1, 2F Area H, Booth 308310, 409411.
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Labels: Other mobile phone brands
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