Fujitsu 2014 Annual Report Download - page 50

MARKET TRENDS
2013 Global Market Trends
Total shipments of conventional PCs and tablets in Japan in 2013
came to 22.36 million units. Shipments of conventional PCs
declined 0.3% year on year to 15.65 million, mainly because of
the continuing shift toward tablets. However, the decline was
offset by an uptick from replacement demand, particularly in the
corporate market, with the expiration of support for Windows XP.
Another key contributor was a surge in demand among consum-
ers ahead of the April 2014 consumption tax increase in Japan.
The market for tablets continued its steady expansion, with
shipments in Japan up 86.4% year on year to 6.71 million units.
Demand for low-cost tablets continued its upward trend in the
consumer market, while demand was robust for tablets in the
corporate market. Globally, shipments of conventional PCs and
tablets amounted to 512.6 million units.
The market for conventional PCs contracted 9.7% from the
previous year to 317.2 million units. The tablet market, mean-
while, continued to expand, growing by 67.9% year on year to
195.4 million units.
The number of mobile phones shipped in Japan fell 1.5% year
on year to 39.21 million units. The decrease was the result of
sluggish migration from feature phones to smartphones, and
slack shipment volumes of Android operating system terminals.
Worldwide demand for car navigation systems increased 7.5%
year on year to 12.19 million units. In Japan, volume was higher
for the year atop a rebound in new automobile sales and a surge
in demand ahead of the consumption tax increase through the
second half of the year, countering declines in the first half from
the absence of buyer incentives for the purchase of eco-conscious
vehicles. In the US market, brisk automobile sales led to strong
growth, while in Europe, sales growth was modest for car naviga-
tion systems as automobile sales grew modestly.
Outlook for 2014
The outlook for shipments of conventional PCs and tablets in
Japan for 2014 is 22.66 million units. Both the corporate and
consumer markets for conventional PCs are expected to decline
on a fall back from a surge in special demand in 2013, and are
projected to decline 6.1% to 14.69 million units. The tablet
market is forecast to increase 18.7% year on year to 7.97 million
units, with expectations of continued new demand in the con-
sumer sector, while the corporate sector is expected to expand in
the fields of product sales tools and education. Global shipments
of conventional PCs and tablets are projected to be 584.68 mil-
lion units. The conventional PC market is expected to see weaker
sales, mainly on slower economic growth in emerging economies
and the ongoing shift to tablets, with shipments declining 1.0%
year on year to 313.93 million units. The tablet market is forecast
to grow steadily, with shipments increasing 38.6% year on year
to 270.75 million units.
In mobile phones, domestic shipments are expected to
decrease 4.7% to 37.35 million units. Volume is expected to
decline in the consumer market amid a drop in new smartphone
demand, leaving replacements as the main source of demand. In
the corporate market, replacement demand is likely to spur
continued expansion as users switch from feature phones to
smartphones.
Worldwide demand for car navigation systems is projected to
increase 4.0% year on year to 12.68 million units, reflecting
anticipated growth from the rollout of new products with smart-
phone connectivity and lower-priced products in the expanding
automobile market.
OPERATIONAL REVIEW AND INITIATIVES
Fiscal 2013 Business Results
Net sales in the Ubiquitous Solutions segment totaled ¥1,125.4
billion in fiscal 2013 (up 3.2% year on year).
Worldwide shipments of Fujitsu PCs increased 1.2% to 5.9
million units. In Japan, shipments rose dramatically, notably to
the corporate market, in line with replacement demand from the
expiration of support for Windows XP. In the consumer market,
while shipments declined in step with market contraction, higher
prices from efforts to partially pass along the impact of the yen’s
depreciation, and a surge in demand in the fourth quarter ahead
of a consumption tax increase, contributed to shipments. Outside
Japan, shipments were lower, in line with a switch over to policies
emphasizing profitability, from the second half of fiscal 2012.
In mobile phones, domestic shipments declined a substantial
43% year on year to 3.7 million units. The first half of the fiscal year
was particularly sluggish on the impact of telecommunications
carriers having revised their sales policies. Shipments of tablets to
the finance sector and other corporate customers were brisk.
In mobilewear, revenues in Japan rose atop a rebound in
shipments of new automobiles and a surge in demand ahead of
the consumption tax increase. Outside Japan, revenues were also
higher as automobile sales remained robust overall, especially in
North America.
Ubiquitous Solutions reported an operating loss of ¥22.1 bil-
lion, a deterioration of ¥31.7 billion from the previous fiscal year.
In Japan, Fujitsu PCs benefited from higher sales mainly to
domestic corporate customers. Outside Japan, along with the
impact of lower unit sales, performance was negatively impacted
by increased component costs from exchange rates. In Germany,
there was a temporary decrease in estimated expenses related to
copyright levies imposed on PCs.
In mobile phones, in addition to a substantial decline in ship-
ments, higher costs associated with improved functionality and
the yen’s depreciation caused a significant decline in earnings.
Mobilewear benefited from higher revenue.
In the mobile phone business, Fujitsu took steps to develop
an efficient production framework capable of withstanding
048 FUJITSU LIMITED ANNUAL REPORT 2014
OPERATIONAL REVIEW AND OUTLOOK
Ubiquitous Solutions