Toshiba 1998 Annual Report Download - page 20

18. Toshiba Corporation Annual Report 1998
TV/VIDEO PRODUCTS
Television sales in Japan were m uch lower as fallin g
prices outpaced growth in deman d for large-screen
m odels. Overseas, color TV results were poor in Russia
an d South east Asia. In th is ch allengin g climate, Tosh iba
is targeting new deman d by offerin g higher resolution
an d m ore function s. In March 1998, Toshiba began
m arketing “FACE,” a 32-in ch wide-screen TV with th e
world’s first shadow-m ask flat picture tube. This revolu-
tion ary TV uses Tosh iba’s Super Brightron tube to pro-
duce a sh arp, vivid im age. In addition , th e im age is
uniform from th e screen’s center to th e edges, th us
en han cin g text legibility. A m ember of the FACE lin eup,
th e ZIP series was also successful. In corporatin g digital
progressive function s, this TV doubles th e scannin g lines
to produce flicker-free im ages. Ideally suited to m ulti-
m edia needs, these models attracted m uch attention
immediately after their launch.
Growth of the IT Vision interactive broadcasting system
con tin ues in Japan. Fiscal 1997 saw th e expansion of th is
technology, in which Tosh iba played a central role, to
m ore regions of Japan. Furtherm ore, IT Vision h as em-
barked on the n ation wide developm en t of subtitled an d
text broadcasts, m akin g its tuners suitable for receivin g
text-based program m ing as well. In April 1998, IT Vision
program s appeared on the WOWOW satellite broadcast-
ing service in Japan. Poten tial exists outside the broad-
castin g field, too. IT Vision is bein g considered for order
processing system s for agricultural and consum er coop-
eratives, in form ation systems for local govern m ents and
other applications. In the Un ited States, NBC and CNN
have decided to adopt IT Vision.
In 1996 Tosh iba tran sferred all responsibilities for its
VCR operation s to Tosh iba Video Products Pte., Ltd. of
Sin gapore. Th is com pany has been in dependen tly per-
form ing fun ctions from product developm en t through
sales. Tosh iba con tinues to place em ph asis on cost-
cutting to becom e m ore com petitive.
RESULTS
Impacted by weak consumer spending and a consumption tax rate hike in Japan, sales
of TVs, washing machines, refrigerators and other appliances declined. Air conditioners,
a major source of segment sales, were down sharply due to
unseasonable summer weather. The result was a 10.0 percent
decrease in sales to ¥1,040.4 billion. To improve this segment’s
performance, Toshiba is reviewing the profitability of each
product and the structure of business sectors. Toshiba is also
rapidly expanding its line of innovative, lifestyle-oriented
products to stimulate demand.
Consumer Products
98
97
96
1,040.4
1,155.6
1,153.5
March
–10.0
0.2
–1.3
0
Sales (¥ billion)
TOPICS
Launched in Japan in March 1998, the FACE
TV has a completely flat picture tube to pro-
duce a vivid, distortion-free picture from edge
to edge. Market acceptance has been strong. ➜ Page 21.
Sales Annual Increase (%)
Notes: 1. See segment information on page 29.
2. Segment sales include intersegment transactions.
Share of Net Sales %
Mar. ’96 ’97 ’98
20.3 18.9 17.0