Alpine 2013 Annual Report Download - page 5

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II. Operational Review
Audio Products Segment
In the Audio Products segment, Alpine worked to expand sales in the North American aftermarket through
sales of head units, chiefly CD players, and sound systems that combine high-quality speakers and
amplifiers, as well as the start of sales of products to the Brazilian market, where a commercial distribution
network was newly acquired. However, as the market environment continued to be harsh, sales remained at
the same level as the previous year. In the European aftermarket, Alpine launched new digital audio
broadcast (DAB)-related products and developed CD player sales promotions to expand sales, but the
market slowed down more than expected, and conditions remained harsh. In the domestic aftermarket,
conditions remained generally difficult as a result of intensifying competition due to reduced market scale
and sluggish sales of speakers that had previously maintained a high market share.
In the OEM market, sales to automakers increased on the back of recovering production and sales at
Japanese automakers, and favorable sales at major U.S. automakers.
Accordingly, segment sales increased 6.0% compared with the previous fiscal year, to ¥59.1 billion.
Information and Communications Products Segment
The Information and Communication Products segment sought to expand sales, through broadening the
appeal of total coordination as “Alpine Style,” proposing unique car interior layouts on the Japanese
aftermarket, in addition to the “BIG-X series” and “Perfect Fit” systems, which gained the No. 1 position
in terms of customer satisfaction in a survey conducted by an external ratings agency. The segment also
strengthened its lineup of new products that meets user needs, such as by launching onto the market the
REARVISION in-car monitor fitted with an ion-generating system, a world first, and navigation systems
with a 9-inch display. However, sales suffered a decline as a result of new products launched onto the
market by competitors and the intensifying price competition. Sales in the European and U.S. aftermarkets
were sluggish due to a sales decline resulting from deteriorating market conditions, as well as the
later-than-planned introduction of new products.
In the OEM market, sales to automakers increased on the back of favorable sales at high-end car
manufacturers in Europe and at major U.S. automakers. Also contributing to the increased sales were the
recovering production and sales at Japanese automakers and the rising proportion of cars that have
navigation or display products installed.
Owing to these factors, sales in this segment grew 10.9% compared with the previous fiscal year, to ¥163.2
billion.
Net Sales by Region Ratio of Net Sales by
Business Segment
Ratio of Net Sales by
Product Segment
36.5
23.6
91.8
51.0
96.1
28.7
29.9
67.6
0
20
40
60
80
100
Americas Europe Asia and
other
Japan
46th fiscal year
47th fiscal year
(billion yen)
27%
73%
Information and
communications
products segment
Audio products
segment
80%
20%
Alpine brand
consumer
products
OEM
automakers