Casio 2006 Annual Report Download - page 14

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In the cellular phone market, a variety of sophisticated new features were introduced as part of the global
shift toward third-generation (3G) products, allowing for high-speed, high-capacity data transmission.
Casio mainly develops, manufactures and sells products for KDDI Corporation’s cellular phone service “au
which is ranked No. 2 in Japan. Casio offers superior cellular phone products with attractive designs which
have proven popular with a wide range of users in Japan.
Casio established Casio Hitachi Mobile Communications Co., Ltd. (CHMC) together with Hitachi Ltd. in
April 2004. During the two-year period following CHMC’s establishment, the joint venture has improved
effi ciency in the development of cellular phone products and has enabled Casio to achieve a year-on-year
increase in the number of models released on the market. Maximizing the benefi ts afforded by the business
integration, we are making full use of both joint venture partners’ strengths to create synergies, with the
aim of developing more sophisticated terminals. For example, the W41CA is 22mm thick and has a PC
site viewer for browsing websites designed for PC users. It allows for music downloads and playing, and a
variety of services, which include high-speed transmissions of large volumes of data. Our GzOne TYPE-R
is collapsible, water-resistant and shock-proof. Among au terminals, they are high-end models, offering
superior functionality and an attractive design. Since its launch, W41CA has held the top share, on a
unit-sales basis, in the cellular phone terminal market for 13 consecutive weeks, according to a survey by
Gfk Marketing Services Japan.
As the world moves toward the introduction of 3G products, we will draw on the strengths of our joint
venture with Hitachi Ltd. and continue developing and launching competitive products that are compatible
with the latest technologies, while maintaining the position of a leading brand for the au service. Aiming
to further expand our scale, we plan to enter the North American market in Fiscal 2007. Meanwhile, last
December we signed a licensing agreement with Qualcomm Incorporated, to widen the scope of application
for telecommunications technologies developed by Qualcomm Incorporated to include all 3G standards.
Through this move, we were able to broaden our options in the development of third-generation cellular
phones. The year ending March 2007 has been positioned as a crucial period for making further progress in
overseas expansion.
Cellular Phones
G’zOne TYPE-R
W41CA
12 CASIO COMPUTER CO., LTD.