Toshiba 1998 Annual Report Download - page 10

8. Toshiba Corporation Annual Report 1998
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QUESTION
QUESTION A.
Q.
A. A number of projects are already under way. Toshiba is targeting two sectors: system integration
(SI) and product provision (PP). In the SI field, there is a powerful groundswell of demand for informa-
tion systems as companies face rising competition. Toshiba plans to raise sales by offering solutions
that tap its proprietary C Solution technology, which facilitates cost reductions. In the PP field, the
company’s server and router lineup is being strengthened. Unit sales of these hardware products are
up about 50 percent compared with the previous fiscal year. In October 1997, the Multimedia Wireless
Access Division was created to lead Toshiba’s work in this network subsector. March 1998 saw the
Q. DEMAND FOR INTRANETS AND OTHER NETWORKS
IS INCREASING. WHAT ARE TOSHIBA’S PLANS HERE?
develop network computer systems using the Java programming language. Designed so that an internal
LAN can be accessed from outside the office, the systems will be promoted mainly for use by sales per-
sonnel and hospitals. Overall, Toshiba expects the networking computing business to expand.
agreement of 17 Japanese, U.S. and European information communication equipment manufacturers on standards and specifi-
cations for mobile network computers. This forms the groundwork for Toshiba’s collaboration with Sun Microsystems, Inc. to
Q. THE DVD MARKET APPEARS TO BE POISED FOR AN
IMMINENT TAKEOFF. WHAT WILL BE TOSHIBA’S ROLE AS THIS
TECHNOLOGY GAINS WIDESPREAD ACCEPTANCE?
A. In the DVD-video player market, demand is climbing along
with the number of software titles. Toshiba’s player output is rising,
too. In the important U.S. market, we have a tie-up with Time
Warner’s content activities. This allowed us to expand DVD-video
player sales in the U.S. from seven large cities to a nationwide
presence. We now have about 40 percent of the market in the U.S.
for these players, including OEM agreements. In Asia, we are offer-
ing models that match local demands. One is a DVD-video player
that is compatible with the video CDs popular in Asia. In China,
Toshiba sells player parts kits to home electronics makers, supplies
technology and cooperates in marketing. This strategy is cementing
efforts to play the leading role there. In the second half of fiscal
1997, Toshiba was the first to enter the DVD markets in Europe, South America and Australia. In Japan
as well, the company was the first to sell compact players. Following an investment in Culture Publishers
Inc., a subsidiary of Culture Convenience Club Co., Ltd., owner of the largest domestic rental video
chain in Japan, some shops started rentals of DVD discs and players. Sales of DVD-ROM drives for
personal computers are rising. We started shipping samples of the world’s first DVD-RAM drives in
September 1997. With Microsoft Corp., we have made DVD technology compatible with Windows 98.
The “ Magnia” series of
global PC servers went
on sale in the U.S. in
June 1998. Able to com-
bine these servers with
PCs, networking equip-
ment and related sup-
port, Toshiba has greatly
upgraded its total solu-
tion capabilities.
In an industry first, Toshiba introduced a com-
pact DVD-video player in November 1997. To
use, simply connect the player to the front video
terminals of a TV. This model is perfect for busi-
ness presentations.
8. Toshiba Corporation Annual Report 1998