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Open System Will Prevail Over Close System: Stan Shih

2011/11/10 | By Philip Liu

Taipei, Nov. 10, 2011 (CENS)--Stan Shih, founder of Acer Inc., pointed out yesterday (Nov. 9) that in contrast to the close-end system of Apple, Google follows an open system, which will win out in the end.

Shih made the comment during a forum with Eric Schmidt, executive chairman of Google, in Taipei. Schmidt agreed with Shih's comment on the prospects of open system.

Schmidt flew to Taiwan yesterday following a visit to South Korea. Schmidt pointed out that what Google cares is consumers and the expansion of market share with the provision of good things. “Google loves both Taiwanese and Korean partners,” said Schmidt.

Shih responded that “Taiwan is everybody's friend, while Korea is everybody's enemy.” Taiwan has a complete hi-tech supply chain, boasts division-of-labor among suppliers, and embraces an open stance. Therefore, it is the best partner for hi-tech innovation in the world.

In contrast, Korea's hi-tech industry concentrates on a number of firms, such as Samsung and LG, which feature high extent of vertical integration and high risk. In South Korea, a company will monopolize an entire line, while in Taiwan, the supply chain consists of many companies, which share co-existence and co-prosperity.