Epson 2006 Annual Report Download - page 17

* Product names and specifications vary among markets
Seiko Epson Annual Report 2006 15 Seiko Epson Annual Report 2006 15
EMP-TW600
(high-definition-ready home projector)
EMP-7950
(ultra-bright business projector)
and direct-view LCD TVs. In step with
the widespread use of DVDs and digital
broadcasts, market needs are projected
to rise for the ability to view content in a
host of different locations. Focusing on
the benefits of projectors that can be used
anytime and anywhere, Epson is develop-
ing products that showcase the appeal of
home projectors to a wider range of
customers. One such example was the
popularity of an easy-to-use, easy-to-setup
projector with a built-in DVD player and
speakers that was launched in 2005. For
customers in search of even better picture
quality, Epson also released a high-
definition model as part of its efforts to
expand the base of home projector users.
Direction of Large-Screen
LCD Projection TV Operations
While year-on-year sales volumes for
large-screen LCD projection TVs rose
during the year under review, sales none-
theless fell short of initial targets for the
business term, as did earnings
performance. To secure medium-term
profitability, Epson will terminate sales in
the North American market, where prices
continue to fall, and concentrate instead
on sales to the Japanese market in the
fiscal year ending March 31, 2007 and
beyond. Although LCD projection TVs
offer advantages such as outstanding
color reproduction and natural images,
one issue is that the sets are thicker than
other flat-screen televisions. While
pursuing technological development
that addresses this and other issues,
Epson will focus on the sale of its highly
cost-competitive 50-inch-plus screens
in the effort to improve the foundations
of this business.
Raising Market Position
Through Technological
Superiority
Epson’s key strengths in this market in-
clude the development of HTPS TFT-LCD
panels, key devices for projection
products, and also powerful product
development capabilities. One example
is the “Instant Off” function for mobile
projectors that eliminated the once
unavoidable cool-down period for
projectors following use. Another is
improvement in lamplight efficiency.
Here, Epson developed its proprietary
E-TORL (Epson-Twin Optimize Reflection
Lamp), a compact, energy-efficient lamp
with outstanding brightness that has
enabled equipped projectors to achieve
greater brightness efficiency. As these
examples show, Epson has long used its
excellent technological capabilities to
spearhead the development and
expansion of the projection market. As
the market continues to grow, Epson will
take full advantage of its technological
superiority, together with the develop-
ment of highly convenient products, to
further entrench its market position.
HTPS TFT-LCD Panels
The technological strengths of these panels include compact size and high-definition imaging. Epson also
has advantages in production capacity for HTPS TFT-LCD panels. Since April 2005, Epson has carried out
the production and shipment of these panels at its Chitose Plant, where it has adopted production technology
utilizing 300-mm (12-inch) quartz glass wafers. While keeping a close watch on market trends, Epson is
progressively upgrading capacity to ensure the stable supply of these products.
EMP-S4
(mobile business projector)