Alpine 2009 Annual Report Download - page 6

Operational Review
In this segment, Alpine’s iPod-LINK Digital media head unit, which was selected for the Fiscal 2008 Good Design Awards (G-Mark) in recognition of its innovative
design, continued to post favorable after-market sales in Japan, the United Sates and Europe. However, sluggish market conditions and intensifying price
competition caused sales of digital media head units to decrease. Such factors also led to a dramatic falloff in sales of our mainstay CD players from the second
half of the fiscal year.
Sales of high-end speakers for minivans also faced challenging conditions during the second half, despite
the favorable record to date resulting from aggressive proposal-based domestic after-market sales.
Genuine products for automobile manufacturers also faced a significant second-half downturn, led by the
impact of cuts in the production of compact cars on orders for CD audio systems. This was in spite of the
excellent reputation for quality of Alpine’s CD audio systems, culminating in a first-place ranking in the North
American Multimedia Quality and Customer Satisfaction Survey.
Furthermore, audio products for the after-market and automobile manufacturers are undergoing structural
changes in the wake of rapid development of products integrating visual and navigation systems. Accordingly,
sales for such integrated products are now accounted for under Information and Communication Equipment.
As a result of the above factors, sales by the Audio Products segment during the term decreased by 28.1%
compared to the corresponding period of the previous fiscal year, to ¥88.4 billion (US$900.0 million).
Audio Products Segment
Driving Mobile Media Solutions
Alpine is committed to offering new and advanced value propositions that will enhance our customers' lifestyles. We will offer
exciting new innovations in all the product categories in which we are active.
Our aim is exciting advances in every product category, products that combine the highest quality and craftsmanship with the most advanced technology,
continuing a tradition that began with our founding in 1967. We got our start in car audio and have since become a leader in car navigation and other
systems that combine audio, visual and communication advances. Now we are moving forward with Drive Assist and other multifunction systems. Through
single-minded focus on equipment for cars, we have accumulated expertise and built a reputation for excellence among auto manufacturers around the
world. Many now turn to us for the OEM equipment they build into their cars. Through consistent leadership in advanced technology, equipment sold
under our own
Alpine brand has become the choice of drivers in North America, Europe, Japan, and the rapidly growing economies of Asia.
Information and Communication Products Segment
In this segment, we introduced the wide-screen, high-quality monitor Rear Vision TMX-R1500/ R1100 to boost domestic after-market sales. Attuned to user
needs and facilitating rearseat viewing of terrestrial digital broadcasts and DVDs, this new product was awarded the 2008 Product Grand Prize, sponsored by
the Nikkan Jidosha Shinbun (a national automotive newspaper), for superior product planning and development.
In step with customer lifestyles, Alpine also focused on its solutions business, which contributes to adding higher value to products. Activities included
showcasing the Rear Vision X077, which packages a large, high-resolution screen with a next-generation
car navigation system, at various trade exhibitions. This initiative, targeting minivan users, was successful in
boosting sales. However, deteriorating global market conditions, exacerbated by the widespread adoption of
portable navigation devices (PNDs) that drove down prices, resulted in a decline in after-market sales.
Sales of genuine products for automobile manufacturers also declined, owing to lower sales of luxury and
larger cars in the crucial Notrh American market. A high percentage of these models employ navigation
systems and visual products; accordingly, with sales negatively impacted accordingly. We enjoyed growth
in orders of large-scale systems, centering on car navigation systems, to high-end European automobile
manufacturers. However, production cutbacks by automobile manufacturers from second half led to a falloff
in orders for genuine products. As a result of the above factors, segment sales decreased by 16.1% year on
year, to ¥108.3 billion (US$ 1,102.1 million).
0
50
100
150
200
-4
22
48
74
100
2007 2009 2008
Net Sales
Operating Income
135.7 129.0
108.3
8.9 9.5
-3.7
Net Sales/Operating Income
(Billions of yen)
6
Operational Review
2007 2009 2008
Net Sales
Operating Income
129.3 122.9
88.4
10.0 5.4 -0.3
Net Sales/Operating Income
(Billions of yen)