D-Link 2014 Annual Report Download - page 3

s
c
onomic environment,
e
al in a very competitive
k
Cloud registered users
m
ore than doubling the
IP camera solutions have
%
share of the consumer
%
share of the consumer
continued development
n
e — our collection of
n
ternet of Things era —
several key competitive
n
explosively expanding
r
us. Falling commodity
a
sing from the U.S. both
m
erging markets. The oil
g
ainst Russia as a result
heavy toll on the ruble,
n
e in the process.
tanding, D-Link’s future
sound. We are mitigating
u
ntries while aggressively
s
of the world where we
oritizing the continued
s
, mydlink Cloud services,
k
to win new subscribers
s
umer markets to greater
i
ness (SMB) markets that
f
erings. And as we enter
r
essing forward with an
oyed by increased R&D
n exciting future for both
evenue totaled NT$ 30.3
3
07 billion. Net income
previous year's NT$ 676
o
duct mix performance,
a
s seen in 2014, a slight
seen in 2013. Operating
last year. Annual earnings
revious year
’
s NT$ 1 06
Market Share According to technology research and advisory firm Gartner (
1
), in
2014, D-Link ranked first in the Enterprise WLAN market based on standalone access points (762,600 units), with a worldwide market share of 50.4 %, up from 45.7% in 2013. In the Enterprise Ethernet Switch market, D-Link ranked third based on total port shipments (63.6 million ports) for a worldwide market share of 15.0%. Additionally, broadband products achieved annual shipments of 7.9 million units, and digital home products achieved annual shipments of 2.1 million units. Based on revenue share by product category (
2
), wireless products accounted for 33.4% of annual
turnover, followed by 27.6% for switches, 18.7% for broadband telecom, and 20.3% for digital home and others.
1
Source: Gartner, Market Share: Enterprise Network Equipment by
Market Segment, Worldwide, 4Q14 and 2014.
2
Source: D-Link 2014 Financial Report.
A Strong Vision for the Future Our focus on high-margin, value-added, cutting-edge solutions continues to differentiate D-Link from low-cost, low-quality competitors, who are quickly losing relevance in the rapidly evolving consumer and business spaces. In order to excel in a new era of connectivity, successful firms will need to rely on innovation, integration, and brand recognition – three of D-Link’s core strengths. Our success in the IP camera market is a direct result of playing to these strengths, and in many ways serves as a blueprint for future achievement. Featuring our pioneering Zero Configuration setup and the powerful mobile management capabilities delivered by our easy-to-use mydlink Cloud services, these products have proven to be an attractive option for customers seeking an ideal mix of control, reliability, and convenience. When used in conjunction with our Cloud Router and Cloud Storage solutions, they allow D-Link to offer high-performance, one-stop cloud networking and surveillance solutions that millions of customers across the globe already trust. As we build upon our existing mydlink Cloud service framework in the future, you can also expect to see more innovative, integrated, all-in-one networking and security solutions tailored for SMBs. Taken together with a recent surge in the use of smart switches, which offer many of the benefits of managed switches but are
less expensive and easier to manage D Link is poised to grab a
better
–
than
our
competition
.
That s
why
we
are
creating
a
line
of smart home products – named “Connected Home” – that will run on a new mydlink Home interface based on mydlink Cloud. In doing so, D-Link is ushering in a new era of home automation and convenience, one that was once only the stuff of science-fiction. The Connected Home will dramatically change the way we interact with our homes. Window, door, motion, and water sensors can all be brought online and are able to communicate with users whenever and wherever they have Internet access. For instance, you can set up a water sensor to push an e-mail alert to your smart phone if the basement floods while you are on vacation, significantly reducing potential water damage. A motion sensor can be programmed to turn on a light whenever someone enters a room for the sake of convenience, or to snap a picture of what caused the motion for enhanced security and peace of mind. And through our Smart Plugs, it is even possible to remotely control your appliances, or to set up on/off schedules and alerts that reduce energy consumption.
Innovation Today and Tomorrow Competing on the cutting edge of Internet technology is no simple task, but D-Link is meeting the challenge head on. We were the first company to offer energy-saving “green” networking technology, the first to enter the 11AC router market, and the first to offer portable 11AC routers. We understand that in order to stay on top, we need to continue to innovate. So as part of our strategy for future growth, we increased our R&D spending by 18% in 2014. And with future plans to open a new R&D center in India, we are continuing our aggressive pursuit of technological advances that will deliver powerful solutions to our customers in the years to come as the demand for greater connectivity grows exponentially. In addition to developing brand new products for our expanding Connected Home line, we are also delivering high-end versions of traditional products to the marketplace featuring aesthetically pleasing, imaginative designs. Our new DIR-890L router, for example, embodies D-Link’s unique brand proposition as we move forward. In addition to delivering industry-leading data transfer speeds, the DIR-890L boasts a sleek, flamboyant, futuristic look that is guaranteed to turn heads in 2015. This emphasis on aesthetics as a means to create value for customers is something you can expect to see more of from us in the future. Global Service, Local Touch Much of D-Link’s past and present success is a direct result of our potent globalization strategy. With offices in 65 countries around the world, D-Link is already widely recognized as a formidable multinational enterprise able to leverage powerful synergies. D-Link’s global presence makes us highly responsive to local customer needs by focusing resources in developing localized applications, giving D-Link a critical advantage across markets and product segments. As our operation s become ever smarter and more efficient, we become better able to adapt to unpredictable global economic trends. Looking ahead, a renewed focus on expanding and improving our relationships with sales channels in all countries and at all levels (retailers, distributors, ITSPs and SIs) will ensure that more of our products and services are able to reach those customers who can benefit the most from them, all while reducin
g
risk and cuttin
g
costs.
In this sense, the future
h
endless. D-Link is respo hopes and expectations services offered by the C
o
our cloud platform an
d
that as the needs of co
n
demand for simple, eleg
a
positioned to give the
p
easily access, control, vie lives. Meanwhile, the connec
t
those of consumers in
t
that we can effectively future. D-Link will conti
n
networking solutions f
o
are looking to cut costs Due to our powerful ver product line, and locali
z
offer SMBs single-vend
o
IT operations on the o scalability, and control
o
analog surveillance syste be a major growth engi
n
about security and acco
u
In the broadband sector
,
economies are rapidly a
d
capitalizing on this tren
d
and Wi-Fi hotspots tha unparalleled convenie
n
invest US$1.7TN in im
p
2014 – 2020, we are con economic pie, both by
v
leader and because we
a
investment in innovation In the midst of all the
s
paradigm shifts, D-Link of fine-tuning our gl
o
opportunities for joint
-
relationships in those c
o
our performance (includ means capitalizing on o
u
which we are doing very a new R&D center). But worldwide economic ins business contracts withi
n
the relative strength of ourselves from global ec
o
As D-Link confronts new in 2015, we wish to th
a
confidence in our visio
n
management team and
o
uphold the spirit of soun and corporate social res
p
D-Link will continue to o people to one another.
m
an & CEO
President
G
ER KAO A.P. CHEN