Taiwanese hardware suppliers have gradually lost the edge in competing with their foreign rivals during the recent years. They have become less competitive for providing lower-cost products.
Aside from moving the production base to places where labor force is cheaper, some vendors, on the other hand, expand their business area to software service with an aim of enhancing the competitiveness of their hardware.
QNAP Systems, Inc, a Taiwan-based network attached storage ( NAS ) and surveillance products provider, showcased its Notes Station at the Computex, which looks similar to EverNote. Notes Station allows QNAP’s NAS users to create digital notes on the private cloud and connect their NAS home portal through the Internet.
We can see that software service provided by hardware vendors are developed merely for boosting their hardware sales, so the hardware vendors rarely design products based on consumers’ demand and often overlook the power of software. Since foreign software service suppliers can provide cross-border service, it is difficult for Taiwanese suppliers to survive in the competitive market.